To whom is the security deposit paid for a Fitstop franchise?
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 |
| Security Deposit and other Pre-Opening Amounts under Lease for Approved Premises5 | $8,000 to $75,000 | As arranged between you and the landlord. | As negotiated and agreed in the lease | Third-Party Landlord |
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 security deposit and other pre-opening amounts under the lease for the approved premises are paid to the third-party landlord. The estimated initial investment for this ranges from $8,000 to $75,000.
The amount of the security deposit is determined through negotiations between the franchisee and the landlord, as specified in the lease agreement. The FDD notes that the security deposit may be refundable, but this is determined by the landlord, not Fitstop. The document also indicates that lease terms, including rent, can vary significantly based on factors such as demand, population demographics, and negotiations with the landlord.
The low end of the estimated range assumes a location in a suburban or rural area, where the security deposit might equal one to two months' rent. Conversely, the high end of the estimate is for premises in higher-end or densely populated areas, where the security deposit could be two to three months' rent. These estimates are based on the experiences of Fitstop's affiliates, their franchisee network in Australia, and information from real estate brokers and consultants.