Can Fitstop require updates and upgrades to the Computer System during the franchise term?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
its on our rights to do so. We may require updates and upgrades to the Computer System and/or Required Software from time to time during the term of the franchise agreement. We require updates and upgrades to your hardware, software and other Computer System components as such become available, at your expense, upon providing you with reasonable advance notice via the Manuals or otherwise in writing (i.e., typically 60 or more days). There are no contractual limitations to the frequency and cost of the obligation to upgrade and maintain these items. With that said, we do not currently have any specific ongoing maintenance and/or support contract requirements other than working with our third-party Approved Supplier for billing/collection and related services. We estimate that you may spend an average of between $500 and $1,500 (per year from the date you acquire the same) on annual updates and maintenance to the Computer System hardware, includin
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may require franchisees to implement updates and upgrades to the Computer System and/or Required Software during the franchise term. These updates and upgrades to hardware, software, and other Computer System components are at the franchisee's expense. Fitstop will provide reasonable advance notice, typically 60 or more days, via the Manuals or in writing before the updates are required.
While there are no contractual limitations on the frequency and cost of these upgrades, Fitstop does not currently have specific ongoing maintenance or support contract requirements, aside from working with their third-party Approved Supplier for billing/collection and related services. Fitstop estimates that franchisees may spend an average of $500 to $1,500 per year from the date of acquisition on annual updates and maintenance to the Computer System hardware, including any non-material upgrades.
This means that a Fitstop franchisee should budget not only for the initial $3,000 to $7,000 investment in computer hardware but also for ongoing annual maintenance and updates. The franchisee needs to be prepared for potential mandatory upgrades, which could impact their operational costs. It is important for prospective franchisees to factor in these potential technology expenses when evaluating the overall financial viability of the Fitstop franchise.