Does Fitstop require franchisees to pay all fees and other amounts as set out in the Franchise Agreement?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must pay all fees and other amounts as outlined in the Franchise Agreement. The agreement states that the payment of these amounts constitutes reasonable consideration for the franchise and the rights awarded to the franchisee in connection with their Franchised Business during the term of the agreement. This encompasses various fees and payments required for the operation of the Fitstop franchise.

Fitstop franchisees are obligated to make timely payments for several items. This includes ensuring payments are made out of their Designated EFT Account to cover training fees for instructors, transfer fees, renewal fees, local marketing requirements, and other marketing/advertising expenditures. Franchisees must also cover amounts due to approved suppliers for required items and to any third-party landlord, supplier, or vendor used in connection with the franchise.

Additionally, if franchisees are required to license and use any required software not covered by the Technology Fee, they must pay the approved supplier directly for the licensing and associated fees. Franchisees must also contribute to the brand development fund, which is equal to 2% of the Gross Revenue generated by the Franchised Business. They may also be required to remit $150 per month as a contribution towards the costs associated with any annual conference that Fitstop establishes for System Business owners.

Failure to comply with these payment obligations could result in breach of contract and potential legal action from Fitstop. Prospective franchisees should carefully review all fee obligations outlined in the Franchise Agreement and FDD, and seek clarification from Fitstop on any unclear points before signing the agreement.