How often is the Fitstop Technology Fee collected?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
you with access to that are System-associated, contain the Proprietary Marks and/or are otherwise used in connection with the Franchised Business (each, an "Applicable Email").
- 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.
- 13.5 Fund Contribution(s). You shall contribute to our brand development Fund in an amount equal to two percent (2%) of the Gross Revenue generated by the Franchised Business, which shall be billed and collected at the same time and manner as your recurring Royalty Fee under Section 13.4 above (your "Fund Contribution"). We may adminster and use the Fund for any and all activities we determine appropriate to promote, market, advertise and/or otherwise develop the System, Proprietary Marks, System Business locations, Approved Services/Products and/or our brand generally, as we determine appropriate in our discretion. You acknowledge that we are not required to expend any particular portion of the Fund or your Fund Contributions on marketing or other services that are allocated specifically to your Designated Territory.
- 13.6 Annual Conference Contribution(s). You may be required to remit to ua an amount equal to $150 per month as a contribution to defray the costs associated with any annual conference we determine to establish and conduct for System Business owners (an "Annual Conference"),
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, the frequency of the Technology Fee collection is not explicitly stated. However, the document does mention that if a franchisee is required to license and use any required software that is not covered by the Technology Fee, they must pay the approved supplier directly for such licensing and other fees associated with that required software as and when required by that provider.
While the FDD does not specify the collection frequency for the standard Technology Fee, it does detail the collection of other fees. For example, the brand development Fund contribution, which is 2% of Gross Revenue, is billed and collected at the same time and manner as the recurring Royalty Fee. The Annual Conference contribution of $150 per month is payable in the same manner as the Royalty Fee on the date Fitstop designates each calendar month once the Franchised Business is open and operating.
To fully understand the payment schedule for the Technology Fee, a prospective Fitstop franchisee should directly ask the franchisor about the specific billing cycle (e.g., monthly, quarterly, annually) and how it aligns with other recurring fees. Understanding the payment terms for all fees is crucial for managing the financial obligations of the franchise.