What is the range of the estimated Fitstop merchant payment processing costs?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| Indemnification | The costs and expenses we incur in connection with your breach or default under your Franchise Agreement or otherwise in the ownership and operation of your Franchised Business. | As incurred by you. | You are solely responsible and must indemnify and hold us harmless for all loss, damage, claims or demands arising from your Franchise including, but not limited to, any joint employment claims. |
|---|---|---|---|
| Annual Convention | We expect this amount to be around $1,500 to $2,000 per attendee | Paid monthly by you. | You will also be responsible for covering the costs that attendees incur in connection with attending any such event. |
| Fee | |||
| Merchant payment processing costs | Then-current amount charged by our Approved Supplier (if applicable) Currently, these fees are estimated to be between 2% and 4% of Gross Revenue generated by your Franchised Business on an ongoing basis | Payable immediately once collected by the Current Billing/POS Provider | These amounts are payable to our third-party Approved Supplier for such services as of the Issue Date. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees will incur merchant payment processing costs. These costs are estimated to be between 2% and 4% of the Gross Revenue generated by the Fitstop franchised business.
These fees are based on the then-current amount charged by Fitstop's Approved Supplier, if applicable. The franchisee is required to pay these fees immediately once collected by the Current Billing/POS Provider.
It is important for prospective Fitstop franchisees to factor in these ongoing merchant payment processing costs when projecting their potential earnings and expenses. These fees are payable to Fitstop's third-party Approved Supplier for such services as of the Issue Date of the Franchise Disclosure Document.