What is the minimum evaluation fee Fitstop may charge for evaluating a franchisee's proposal?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ternative supplier.
If you wish to undertake either of these actions, you must request and obtain our approval in writing before: (i) using or offering the non-approved product or service in connection with your Franchised Business; or (ii) purchasing from a non-approved supplier. You must pay our then-current supplier or non-approved product or service evaluation fee when submitting your request. If you make such a proposal, we reserve the right to charge you the greater of (a) the costs/expenses we incur in evaluating/testing your proposal, and (b)
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee wishes to offer products or services not already approved or purchase required items from an alternative supplier, they must first obtain written approval from Fitstop. As part of this process, the franchisee must pay Fitstop's current evaluation fee.
Fitstop reserves the right to charge the franchisee the greater of two amounts: the actual costs and expenses Fitstop incurs while evaluating or testing the proposal, or a flat fee of $1,000 per proposal. This means that the minimum fee a Fitstop franchisee will be charged for an evaluation is $1,000, even if Fitstop's actual costs are lower.
This policy ensures that Fitstop maintains control over the products and services offered under its brand and allows them to ensure quality and consistency. For a prospective franchisee, this means that introducing new products or suppliers requires a formal request and comes with a guaranteed minimum evaluation cost of $1,000, regardless of the complexity or simplicity of the request.