Can Fitstop modify the Technology Fee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
13.4.2 In the event you are required to license and use any Required Software that is not covered by the Technology Fee above, then you must ensure that you pay our Approved Supplier directly for such licensing and other fees associated with that Required Software as and when required by that provider.
©2024 Fitstop USA, Inc. 6.9 Computer System; Required Software. You must at your cost: (1) install and use in the Franchise computer hardware and software which satisfies the functionality and specification requirements specified by us; (2) acquire and maintain software licenses in respect to all Required Software, whether covered by the Technology Fee or otherwise; and (3) change or upgrade any computer hardware or software used in the Franchise which we reasonably consider is obsolete or superseded, including installation of new computer hardware or software which satisfies the then current functionality and specification requirements specified by us.
For the purposes of this Section, we may, at any time during the Term, require you to purchase computer hardware or license software specified by us directly from us or, subject to law, certain
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop FDD, the document does not explicitly state whether Fitstop has the right to modify the Technology Fee. However, the FDD does state that if franchisees are required to license and use any Required Software that is not covered by the Technology Fee, then they must pay Fitstop's Approved Supplier directly for such licensing and other fees associated with that Required Software as and when required by that provider.
Fitstop franchisees are obligated to install and use computer hardware and software that meets the functionality and specification requirements set by Fitstop. Franchisees must also acquire and maintain software licenses for all Required Software, regardless of whether it's covered by the Technology Fee. Fitstop can also require franchisees to purchase computer hardware or license software directly from them or from certain suppliers.
While the FDD does not directly address the modification of the Technology Fee, it does emphasize Fitstop's authority to specify and update the required technology and software. A prospective franchisee should seek clarification from Fitstop regarding the conditions under which the Technology Fee could change and how these changes would be communicated.