What is the limitation on Fitstop's transfer fees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
application, approval by us, payment of the application, transfer, and training fees, the transferee's execution of the then-current Franchise Agreement, and to our Right of First Refusal where applicable. However, if the transfer is to a named beneficiary or to the spouse or an adult child of an individual, transfer fees are not payable.
- 15.12 Conditions for our approval of transfer include, but are not limited to, the following: (1) you are in full compliance with this Agreement; (2) you pay us all amounts due;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a transfer fee is not payable if the franchise is transferred to a named beneficiary, spouse, or adult child of the individual transferring the franchise. However, all other conditions and requirements regarding transfers still apply, including Fitstop's approval, the transferee's execution of the current Franchise Agreement, and Fitstop's Right of First Refusal, where applicable.
In most other cases, a franchisee must pay Fitstop an Assignment/Transfer Application Fee of $500.00, and upon approval, the franchisee must pay an Assignment/Transfer Fee of $25,000.00 before or at the time of transfer or assignment to a new franchisee. The $500 application fee is nonrefundable but will be credited toward the transfer fee if the transferee is approved. The application fee is subject to upward adjustment based on changes to the Consumer Price Index.
Fitstop's conditions for approval of a transfer include the franchisee being in full compliance with the Franchise Agreement and paying all amounts due to Fitstop. The transferee and its general managers must also satisfactorily complete Fitstop's training program and execute the then-current form of the Franchise Agreement. Additionally, Fitstop must approve any written agreements regarding the transfer, and the franchisee must supply any additional information Fitstop requires. The franchisee must also provide an agreement not to divert business from Fitstop and its franchisees and sign a general release and other documents Fitstop requires.