Are Fitstop franchisees required to acquire and use specific computer hardware and electronic equipment?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
for any reason, to execute a transfer of any communications number to be held by us.
- ©2024 Fitstop USA, Inc. 6.9 Computer System; Required Software. You must at your cost: (1) install and use in the Franchise computer hardware and software which satisfies the functionality and specification requirements specified by us; (2) acquire and maintain software licenses in respect to all Required Software, whether covered by the Technology Fee or otherwise; and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us. For the purposes of this Section, we may, at any time during the Term, require you to purchase computer hardware or license software specified by us directly from us or, subject to law, certain
suppliers which we may approve. You must allow us to have access to your computer hardware and software and to all information that is stored in it including by any instantaneous means of telecommunication or internet protocol, unless prohibited by state or federal law. If we introduce a pointof-sale system, you must install the point-of-sale system approved by us that meets our performance standards. You must permit us or our duly authorized agents at all times, and from time to time, to copy any information contained in your point-of-sale system to a computer system operated by us, our nominee, or agents. You must ensure that connectivity is maintained and available at all times to allow all data generated by the point-of-sale system to be captured by us. If for any reason copying is not possible, then without in any way limiting the obligations herein, we may require you to download the information required by us into machine readable information compatible with the system operated by us.
- 6.10 Right to Audit and/or Inspect. In addition, we reserve the right to audit your financial information quarterly upon reasonable demand and require that you provide to us on or before April 15 of each year a copy of the Franchise's financial statements, including profit and loss statements, that are reasonably requested by us.
- 6.11 Required Software (including CMS) and Use of Approved Supplier for Billing/Collection and Point of Sale (POS) Software and/or Services. You must at your cost: (1) acquire and install the software necessary to access the CMS, as well as any other cloud-based or other software program, we require you license and/or use in connection with your Franchised Business (collectively, the "Required Software"); (2) pay all fees and costs to our then-current Approved Supplier, for such Required Software; (3) acquire and install all other software required to operate the Franchise as directed by us; and (4) acquire and use computer hardware and other electronic equipment as set forth in the Manual(s) or otherwise in writing, whether prior to opening or thereafter (the "Computer System"); and (5) utilize our then-current Approved Supplier that will (a) provide billing and collection services with respect to all membership fees and other revenue generated by the Franchised Business, and (b) remit the appropriate amounts to you and other System franchisees, less the applicable Royalty Fees, Fund Contributions and other recurring amounts due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acquire and use computer hardware and software that meets the franchisor's specified functionality and specification requirements. This includes installing specified computer hardware and software, maintaining software licenses for all required software, and upgrading hardware or software that Fitstop considers obsolete. Fitstop may require franchisees to purchase computer hardware or license software directly from them or designated suppliers.
Fitstop franchisees are obligated to use the Required Software and CMS (Content Management System) according to Fitstop's directions and must maintain 24-hour internet access. They need to submit reports electronically in a format compatible with the Required Software and CMS, keep the software, CMS, and associated hardware secure, and ensure they are used only for authorized purposes. Franchisees must also provide Fitstop with access to their computer systems, including passwords, for monitoring and auditing purposes.
Furthermore, franchisees must acquire and install software to access the CMS and any other required software programs. They are also responsible for paying all fees and costs to Fitstop's approved supplier for the Required Software. The FDD states that franchisees must acquire and use computer hardware and other electronic equipment as detailed in the manuals or in writing. This ensures that all Fitstop locations operate with standardized and compatible systems, allowing for efficient data management, communication, and adherence to brand standards.