Are Fitstop franchisees required to use software and technology designated by the franchisor?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
f our current Fund.
As of the Issue Date, we expect and intend to have Approved Suppliers for the following items you must purchase in connection with your Franchised Business as of the Issue Date of this Disclosure Document: (i) certain furniture, fixtures, equipment and supplies you must purchase to buildout and/or operate your Franchised Business; (ii) site selection and other real estate services (recommended, but not necessarily required); (iii) software and technology we designate for use in connection with the System; (iv) signage furniture, fixtures, equipment, supplies and inventory comprising the Start-Up Equipment and Supplies
Package (detailed more fully in Item 8); (v) other inventory items and paper goods; (vi) branded items and retail merchandise, including certain Approved Products; (vii) certain marketing materials and services, which may include digital marketing and collateral such as flyers, coupons, banners, flags and similar promotional items; (viii) music licensing services (for use at your Premises); and (ix) project management and related services associated with the buildout and design of your Franchised Business (optional, not required).
Except as disclosed in this Item, (i) neither we nor any of our affiliates is currently an Approved Supplier for any other Required Item; and (ii) none of our officers own an interest in any third-party Approved Supplier.
We reserve the right to appoint ourselves, our affiliate(s) and/or any third party as the designated or Approved Supplier for any Required Item in the future, which we will communicate via the Manuals or other prior written notice.
Method of Approving Suppliers or Non-Approved Products
We may, but are not obligated to, grant your request to: (i) offer any products or services in connection with your Franchised Business that are not Approved Products and Services; or (ii) purchase any item or service we require you to purchase from an Approved Supplier from an alternative supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to use designated software and technology in connection with the Fitstop system. Fitstop expects to have approved suppliers for software and technology used in the system.
Fitstop franchisees must purchase and maintain a laptop or desktop computer with standard productivity software and internet access for managing and reporting on their franchised business. This computer will also be used with Fitstop's Current Billing/POS Provider and associated Required Software. While there isn't a specified approved supplier for the computer hardware, franchisees must have a dedicated computer for POS and a printer that meets Fitstop's system standards and specifications.
Since Fitstop franchisees accept credit cards, they must comply with Payment Card Infrastructure (PCI) industry and government requirements. These PCI security standards are designed to protect cardholder data and apply to all organizations that store, process, or transmit this data. However, Fitstop does not represent or certify that the credit card processing service they approve or provide is compliant with PCI Data Security Standards.