factual

What services does the approved supplier provide to Fitstop franchisees regarding billing and collection?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

al statements, including profit and loss statements, that are reasonably requested by us.

  • 6.11 Required Software (including CMS) and Use of Approved Supplier for Billing/Collection and Point of Sale (POS) Software and/or Services. You must at your cost: (1) acquire and install the software necessary to access the CMS, as well as any other cloud-based or other software program, we require you license and/or use in connection with your Franchised Business (collectively, the "Required Software"); (2) pay all fees and costs to our then-current Approved Supplier, for such Required Software; (3) acquire and install all other software required to operate the Franchise as directed by us; and (4) acquire and use computer hardware and other electronic equipment as set forth in the Manual(s) or otherwise in writing, whether prior to opening or thereafter (the "Computer System"); and (5) utilize our then-current Approved Supplier that will (a) provide billing and collection services with respect to all membership fees and other revenue generated by the Franchised Business, and (b) remit the appropriate amounts to you and other System franchisees, less the applicable Royalty Fees, Fund Contributions and other recurring amounts due under this Agreement. To the extent access to a given Required Software is afforded as part of your then-current Technology Fee, the Applicable Provider(s) of such Required Software will either (a) provide you with login credentials to initially access such software directly, or (b) work with us to ensure you are provided with said credentials.

You must (1) access and use the Required Software and the CMS to operate the Franchise strictly in accordance with our direction; (2) have permanent 24 hour internet access (subject to black out and telecommunication network difficulties); (3) submit reports electronically to us in a format compatible with the Required Software and the CMS; (4) keep the Required Software, the CMS and required computer hardware and electronic equipment secure from unauthorized use and in good working order and repair; (5) ensure that the Required Software, the CMS, and the data uploaded or downloaded thereon, is used only for their authorized purpose and are not modified, altered, varied, changed, copied, reproduced or reverse engineered; (6) comply with all of our reasonable requirements made from time to time relating to the use of Required Software and the CMS; (7) give us access at all times to your Computer System and Required Software, including providing details of any access passwords and other access codes required, to enable us to upload or download information and to monitor and audit the Franchise's data and reports; (8) enter all information onto the Required Software and the CMS as required by us and ensure all information required by us is inputted on receipt of the information as expediently as possible and in any case by 5 p.m. local standard time of the next calendar day of the request; and (9) upgrade the computer hardware and electronic equipment and the Required Software or other software necessary to access the Required Software and the CMS as we reasonably require.

©2024 Fitstop USA, Inc. The Required Software and the CMS must only be used by you and your employees in the course of operating the Franchise. You are responsible for the use, supervision, management and control of the

Required Software and CMS and must take all action reasonably within your control to ensure that the Required Software and CMS are protected at all times from misuse, damage, destruction or any form of unauthorized use. You must reasonably prevent your employees from disclosing or recording the username and password to the Required Software and the CMS. You must ensure that the Required Software and the CMS are only accessed by specific users who have been nominated by you and approved by us. You may at any time, by notice in writing to us, request approval of an additional approved user or the termination authority of an existing user.

We reserve the right to limit or remove the access of the Franchise and/or any employee to the CMS in the event you breach this Agreement. You agree to indemnify us for any failure by you to comply with this clause, or for any loss caused by or resulting from your non-compliance except to the extent we have acted with gross negligence or willful misconduct. You must notify us in writing within 48 hours (1) if any approved user ceases to be associated with the Franchise or (2) of any breach of the conditions of use or security of the CMS.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are required to use an approved supplier for billing and collection services. This supplier is responsible for collecting membership fees and other revenue generated by the Fitstop franchise. They also handle billing and invoicing for amounts due to Fitstop, including royalty fees, fund contributions, and other recurring charges outlined in the agreement.

The approved supplier remits the gross revenue to the franchisee, after deducting any amounts owed to Fitstop or its affiliates. This process ensures that Fitstop receives its due payments while the franchisee receives the remaining revenue. The specific approved supplier will be identified in Fitstop's manuals or other written communication.

Fitstop also requires franchisees to participate in an automatic debit/credit transfer program (EFT Program) for payments due to Fitstop. This program ensures timely payments of fees owed to Fitstop. All payments from members for approved products and services must be processed through Fitstop's online ordering system, either via the website or application. Fitstop may allocate discounted or free memberships to certain individuals, and members can choose to deal with any franchisee, regardless of location. Payments received by Fitstop through the online ordering system are accepted on behalf of the franchisee and are paid out by a third-party vendor on the third calendar day of each month, less any merchant fees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.