What is the franchisee's responsibility regarding unpaid royalties to Fitstop when collecting from a delinquent member?

According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee collects money from a delinquent member account, the franchisee is responsible for any unpaid royalties, management fees, note payments, and other payments due to Fitstop on the amounts collected.

This means that when a Fitstop franchisee successfully recovers funds from a member who has not paid their dues, the franchisee must first allocate a portion of those recovered funds to cover any outstanding royalties or other fees owed to Fitstop. This ensures that Fitstop receives its share of revenue, even from previously delinquent accounts.

This policy creates a direct financial responsibility for the franchisee. It incentivizes franchisees to actively pursue collections from delinquent members, but also requires them to carefully manage those collections to ensure Fitstop's fees are prioritized and paid. Franchisees should maintain detailed records of all collections and payments to accurately calculate and remit the appropriate royalties and fees to Fitstop.