What is the potential cost range for site selection assistance when opening a Fitstop, and when is payment 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 |
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 estimated cost for site selection assistance ranges from $0 to $10,000. This cost is typically paid as a lump sum prior to opening your Fitstop location.
The low end of the estimate assumes that the third-party provider assisting with site selection will be compensated by the landlord of the approved site, which Fitstop indicates is a common practice among national real estate brokers. This scenario would mean no direct cost to the franchisee for site selection assistance.
However, the higher end of the estimate accounts for situations where the franchisee may need to pay the site selection assistance provider directly. It also includes potential out-of-pocket expenses for preliminary buildout analysis or other information required as part of the site proposal package. Therefore, prospective Fitstop franchisees should budget accordingly and clarify the payment terms with their chosen site selection provider.