Does Fitstop intend to uniformly impose the initial franchise fee on all new franchisees?
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, Fitstop intends to uniformly impose the initial franchise fee on all new franchisees. The initial franchise fee is $50,000, which is to be paid in a lump sum immediately upon the execution of the Franchise Agreement. This fee is considered fully earned upon the agreement's execution and is non-refundable under any circumstances.
If a franchisee wishes to develop multiple Fitstop locations, they may be offered the right to do so by either entering into a separate franchise agreement for each location or by indicating that a single franchise agreement will govern more than one franchised business. This indication would be in the form of an exhibit or addendum to the initial Franchise Agreement at the time of its execution. Unless Fitstop agrees otherwise in writing, the initial franchise fee is due in connection with each franchised business the franchisee is awarded to develop.
This uniform application of the initial franchise fee provides transparency for prospective franchisees, allowing them to anticipate this cost when considering a Fitstop franchise. However, it's important to note that while Fitstop intends to impose the fee uniformly, there may be exceptions if Fitstop agrees otherwise in writing. Therefore, prospective franchisees should confirm the current fee and any potential variations with Fitstop during their due diligence process.