Is the payment of the Technology Fee for a Fitstop franchise dependent on the franchisee having access to the System license?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.4.1 You must pay us (or our Approved Supplier) our then-current Technology Fee as consideration for the technology-related services, development and/or software we determine to (a) be associated with the System, and (b) provide you with access to as part of your System license (the "Technology Fee").
As at the date of execution of this Agreement, our Technology Fee amounts to2% of the Gross Revenue generated by the Franchised Business.
The Technology Fee shall be collected at the same time and in the same manner as your Royalty Fees above, unless we designate a different payment interval in the Manuals or otherwise in writing.
We may modify the Technology Fee for our System franchisees upon 60 days' prior written notice via the Manuals or otherwise.
13.4.2 You must pay, and we reserve the right to collect, the then-current amount payable in connection with a second and any additional e-mail accounts we afford 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Technology Fee is directly tied to the franchisee's access to the System license. Fitstop franchisees must pay the Technology Fee as consideration for technology-related services, development, and software that Fitstop determines to be associated with the System, and which provides the franchisee with access to the System license. As of the date of the Franchise Agreement, the Technology Fee is 2% of the Gross Revenue generated by the Franchised Business.
This fee is collected at the same time and in the same manner as the Royalty Fees, unless Fitstop designates a different payment interval in the Manuals or otherwise in writing. Fitstop retains the right to modify the Technology Fee for all System franchisees, providing 60 days' prior written notice via the Manuals or other written communication.
Additionally, franchisees may be required to pay for second or additional email accounts that are System-associated, contain the Proprietary Marks, or are used in connection with the Franchised Business. If franchisees are required to license and use any Required Software that is not covered by the Technology Fee, they must pay the Approved Supplier directly for the licensing and other associated fees.