When are Fitstop franchisees required to pay project design and site approval fees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
In consideration for those services, you must pay us for any reasonable project design and site approval fees upon demand from us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must pay reasonable project design and site approval fees upon demand from Fitstop. This requirement is tied to the initial build-out of the premises for the Franchised Business. Fitstop may, at its discretion, organize the build-out, but regardless of who manages the build-out, Fitstop retains the right to review, approve, and confirm the design and construction of the premises.
This means that a prospective Fitstop franchisee should be prepared to pay these fees when Fitstop requests them, which is likely to occur during the initial phase of setting up the franchise location. These fees are in consideration for Fitstop's services in reviewing and approving the design and build-out of the premises. It is important for franchisees to factor these potential costs into their initial investment and budget.
Franchisees are also responsible for ensuring the build-out complies with Fitstop's system standards and specifications, including the design, layout, and required furniture, fixtures, and equipment. They must use Fitstop's designated Approved Suppliers for any required items and provide regular updates and reports to Fitstop throughout the build-out process. This ensures that the franchisee adheres to Fitstop's standards and that the project stays on track.
Therefore, a Fitstop franchisee needs to maintain open communication with Fitstop during the build-out phase and be prepared for potential project design and site approval fees. Understanding the timing and amount of these fees is crucial for managing the financial aspects of establishing the franchise.