If requested by Fitstop, who is responsible for paying charges to telecommunications service providers in connection with the telephone and communications systems used by the Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.8 Telephone and Communications Systems. You must, if requested in writing by us at any time during the Term, at your cost: (1) install and use in the Franchise telephone and other communications systems (including point of sale hardware and software) specified by us for the operation of the Franchise; (2) change or upgrade any telephone and communications systems used in the Franchise which we consider obsolete or superseded, including installation of new telephone and communication systems specified by us; and (3) ensure that all telephone and communications systems are secure from unauthorized access or use.
You: must (1) pay on time all charges payable to any telecommunications service provider or to any other person in connection with the use of these systems; and (2) change, substitute, or discontinue the use of any communications number when requested by us.
We can require you, at any time and for any reason, to execute a transfer of any communications number to be held by us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for paying all charges to telecommunications service providers related to the telephone and communications systems used by the Fitstop franchise, if Fitstop requests the installation and use of specific systems in writing. This includes ensuring timely payments to telecommunications service providers or any other person connected to the use of these systems.
This means that as a Fitstop franchisee, you will bear the financial responsibility for all telecommunication service charges associated with the phone and communication systems that Fitstop mandates for your franchise. This encompasses not only the initial setup and installation costs, but also the ongoing service fees. Furthermore, Fitstop retains the right to direct you to change, substitute, or discontinue the use of any communications number.
Fitstop also has the right to require the franchisee to transfer any communications number to them at any time and for any reason. This could impact the franchisee's business if a specific phone number has been marketed and is well-known to their customer base. It is important for a prospective franchisee to factor in these potential costs and restrictions when evaluating the financial viability of the franchise.