When is the Fund Contribution for a Fitstop franchise due?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You will be required to contribute to the Fund an amount equal to two percent (2%) of the Gross Revenue of the Franchised Business ("Fund Contributions"), which shall be remitted to us at the same time and in the same manner as your Royalty Fees (unless we designate another method upon at least 30 days' prior written notice via the Manual(s) or otherwise).
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must contribute to the brand development fund, with the contribution being 2% of the Franchised Business's Gross Revenue. These Fund Contributions are remitted at the same time and in the same manner as the recurring Royalty Fees.
This means that the frequency and method of payment for the Fund Contribution will mirror that of the Royalty Fees. The FDD states that Fitstop may designate another method for remitting Fund Contributions, provided they give at least 30 days' prior written notice via the Manual(s) or otherwise.
Prospective franchisees should clarify the exact schedule and method for Royalty Fee payments during their due diligence, as this will directly determine when the Fund Contributions are due. Understanding these payment terms is crucial for managing cash flow and financial planning for a Fitstop franchise.