How much is the initial franchise fee for a Fitstop franchise, and when is it due?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| YOUR ESTIMATED INITIAL INVESTMENT | ||||
|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made |
| Initial Franchise Fee1 | $50,000 | Lump sum | Upon execution | Us |
| Initial Marketing Spend2 | $10,000 | Lump sum | Prior to opening | Approved Supplier for digital/online marketing; Third-Party Provider for other expenditures |
| Other Initial Marketing and Promotional Activities2 | $1,000 to $10,000 | As arranged | As invoiced or agreed | Approved Supplier and/or other Third-Party Providers (videographer, etc.) |
| Training-Related Costs and Expenses3 | $1,000 to $7,500 | As arranged | Prior to Opening | Third-Party Providers for Travel, Lodging, Meals and Local Transportation |
| Site Selection Assistance | $0 to $10,000 | Lump sum | Prior to opening | Approved Supplier or other Third-Party Provider |
| Security Deposit and other Pre-Opening Amounts under Lease for Approved Premises5 | $8,000 to $75,000 | As arranged between you and the landlord. | As negotiated and agreed in the lease | Third-Party Landlord |
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is payable as a lump sum upon the execution of the Franchise Agreement. Fitstop considers this fee fully earned upon payment, which means it is non-refundable.
In addition to the initial franchise fee, prospective Fitstop franchisees should be aware of other initial investments required before opening their business. These include an initial marketing spend of $10,000, other marketing and promotional activities ranging from $1,000 to $10,000, and training-related costs between $1,000 and $7,500. Site selection assistance can cost from $0 to $10,000, while security deposits and pre-opening lease amounts can range from $8,000 to $75,000.
These initial costs, including the franchise fee, contribute to the total estimated initial investment for a Fitstop franchise, which ranges from $306,000 to $823,500. It is important for potential franchisees to carefully review all the expenditures and payment terms, and to consult with financial advisors to ensure they are prepared for the full financial commitment. Understanding when each payment is due is crucial for budgeting and managing cash flow during the initial setup phase.