When is the Technology Fee for a Fitstop franchise due?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.4.1 You must pay us (or our Approved Supplier) our then-current Technology Fee as consideration for the technology-related services, development and/or software we determine to (a) be associated with the System, and (b) provide you with access to as part of your System license (the "Technology Fee").
As at the date of execution of this Agreement, our Technology Fee amounts to2% of the Gross Revenue generated by the Franchised Business.
The Technology Fee shall be collected at the same time and in the same manner as your Royalty Fees above, unless we designate a different payment interval in the Manuals or otherwise in writing.
We may modify the Technology Fee for our System franchisees upon 60 days' prior written notice via the Manuals or otherwise.
- 13.4.2 You must pay, and we reserve the right to collect, the then-current amount payable in connection with a second and any additional e-mail accounts we afford you with access to that are System-associated, contain the Proprietary Marks and/or are otherwise used in connection with the Franchised Business (each, an "Applicable Email").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Technology Fee is due at the same time and in the same manner as the Royalty Fees, unless Fitstop designates a different payment interval in the Manuals or otherwise in writing. As of the date of the Franchise Agreement, the Technology Fee is 2% of the Gross Revenue generated by the Franchised Business.
This means that a Fitstop franchisee will typically pay the Technology Fee alongside their Royalty Fees, which are also a percentage of gross revenue. The FDD does not specify the exact frequency (e.g., weekly, monthly) that Royalty Fees are collected, so a prospective franchisee should confirm the payment schedule with Fitstop.
Fitstop retains the right to modify the Technology Fee with 60 days' prior written notice via the Manuals or otherwise. Additionally, franchisees may be required to pay the then-current amount for second and any additional email accounts that are System-associated, contain the Proprietary Marks, and/or are otherwise used in connection with the Franchised Business.