Are Fitstop franchisees required to use an approved supplier for billing/collection and POS software?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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 are required to use an approved supplier for billing/collection and POS software. Specifically, franchisees must acquire and use a designated supplier for billing and collection services related to membership fees and other revenue. This supplier will handle remitting appropriate amounts to the franchisee and other franchisees within the Fitstop system, after deducting Royalty Fees, Fund Contributions, and other recurring amounts owed under the Franchise Agreement.
This requirement ensures consistency and standardization across the Fitstop franchise network in financial operations. By mandating the use of an approved supplier, Fitstop aims to maintain control over how revenue is collected, distributed, and accounted for. This can help streamline financial processes and reduce the risk of errors or discrepancies.
Furthermore, franchisees must acquire and install software necessary to access the CMS (Content Management System), along with any other cloud-based software programs that Fitstop requires for the operation of the franchise. Franchisees are responsible for paying all fees and costs to Fitstop's approved supplier for this required software. They must also acquire and install all other software required to operate the franchise as directed by Fitstop, and acquire and use specified computer hardware and other electronic equipment as outlined in the manuals or in writing.
Fitstop also retains the right to audit a franchisee's financial information quarterly and requires franchisees to provide annual financial statements, including profit and loss statements, by April 15th of each year. This further underscores the importance of adhering to the approved billing and POS software to ensure accurate and transparent financial reporting within the Fitstop franchise system.