Can the initial franchise fee for multiple Fitstop Franchised Businesses be waived?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
chise Fee
You must pay us an initial franchise fee amounting to $50,000 (the "Initial Franchise Fee"), which is due in a lump sum immediately upon execution of your Franchise Agreement. The Initial Franchise Fee is deemed fully earned upon execution of your Franchise Agreement, and is not refundable under any circumstances.
In the event you wish to develop multiple Franchised Businesses, then you may be offered and awarded the right to open and operate such businesses by either (a) entering into a separate form of our then-current franchise agreement for each such location, or (b) indicating that a single form of franchise agreement will govern more than one (1) Franchised Business in a form of exhibit or addendum to your initial Franchise Agreement at the time it is executed. The Initial Franchise Fee shall be due in connection with each Franchised Business you are awarded to develop, unless we agree otherwise in writing, and all other disclosures above will apply to such payments.
We expect and intend to impose the Initial Franchise Fee above uniformly on our new System fr
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the initial franchise fee of $50,000 is typically required for each Franchised Business. However, Fitstop may agree to waive this fee in writing if a franchisee is developing multiple locations.
If a prospective franchisee wishes to develop multiple Fitstop locations, they may be offered the right to do so under two options: entering into a separate franchise agreement for each location or indicating that a single franchise agreement will govern more than one Franchised Business through an exhibit or addendum to the initial Franchise Agreement.
While Fitstop expects to uniformly impose the initial franchise fee on new franchisees, the FDD indicates that there is a possibility for the fee to be waived for franchisees developing multiple locations, but this must be agreed to in writing. This provides an opportunity for negotiation, but it is not guaranteed. Prospective franchisees should discuss this possibility with Fitstop if they plan to open multiple locations.