Can the initial franchise fee for multiple Fitstop franchises be waived or altered?
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 standard initial franchise fee is $50,000, payable in a lump sum upon signing the Franchise Agreement. This fee is considered fully earned and is non-refundable.
However, if a franchisee intends to develop multiple Fitstop locations, there are two ways to proceed: entering into a separate franchise agreement for each location or having a single agreement that covers multiple locations via an exhibit or addendum. While the initial franchise fee is due for each location, Fitstop may agree to alter this requirement in writing.
This indicates that while Fitstop intends to apply the standard initial franchise fee uniformly, there is room for negotiation, especially for franchisees committing to multiple locations. Any deviation from the standard fee must be documented in writing to be valid.