What services does the Fitstop Approved Supplier provide regarding gross revenue?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.1.1 Approved Supplier for Gross Revenue Collection, Billing and Remission of Funds to Franchisee. Unless we designate a different method in our Manuals or otherwise in writing, the Parties agree that we will designate an Approved Supplier to provide the following services on behalf of you and other System franchisees: (i) collection of membership fees and/or other Gross Revenue generated by the Franchised Business, as well as related merchant processing services; (ii) billing/invoicing services for the amounts due to us and/or any of our affiliates under this Agreement; and (iii) remission of the Gross Revenue, less any amounts due to us and/or our affiliates under this Agreement at the time of each such remission, to you.
Our then-current Approved Supplier(s) for such services, like other Approved Suppliers, will be identified in writing by us via the Manuals or otherwise.
- 13.1.2 EFT Program Participation; Designated EFT Account. Regardless of your obligations under Section 13.1.1, you must at all times participate in our automatic debit/credit transfer program as specified by us in our Manuals or otherwise in writing (the "EFT Program") for the payment of any amounts due to us pursuant to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, an Approved Supplier will be designated to provide specific services related to gross revenue collection, billing, and fund remission. This Approved Supplier will collect membership fees and other gross revenue generated by the Fitstop franchise, provide related merchant processing services, and handle billing and invoicing for amounts due to Fitstop or its affiliates under the Franchise Agreement. The Approved Supplier will also remit the gross revenue to the franchisee, after deducting any amounts owed to Fitstop or its affiliates.
Fitstop franchisees are obligated to participate in an automatic debit/credit transfer program (EFT Program) for payments due to Fitstop, regardless of the Approved Supplier's role in gross revenue collection. The specific methods and details of this program are outlined in Fitstop's manuals or other written communications. The identity of the Approved Supplier for these services will be disclosed in writing by Fitstop via its manuals or other official notifications.
This arrangement centralizes financial transactions through an Approved Supplier, potentially streamlining revenue collection and fee payments for Fitstop franchisees. However, franchisees should confirm the costs associated with these services and the specific procedures for revenue reconciliation and dispute resolution with the Approved Supplier. It is also important to understand the implications of the mandatory EFT Program and ensure that the franchisee's Designated EFT Account is properly set up and maintained.