If required to license software not covered by the Technology Fee, who does the Fitstop franchisee pay?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.4.2 In the event you are required to license and use any Required Software that is not covered by the Technology Fee above, then you must ensure that you pay our Approved Supplier directly for such licensing and other fees associated with that Required Software as and when required by that provider.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee is required to license and use software that is not covered by the Technology Fee, they must pay the Approved Supplier directly for the licensing and other associated fees. This payment is due as and when required by that provider.
This means that in addition to the Technology Fee, which is 2% of gross revenue, a Fitstop franchisee may incur additional costs for required software. These costs are paid directly to the software provider approved by Fitstop, not to Fitstop itself.
Prospective franchisees should inquire about what software is considered "Required Software" but not covered by the Technology Fee. Understanding these potential additional software costs is crucial for budgeting and assessing the overall financial viability of the franchise.