Are there any fees associated with any required upgrades to the Fitstop location?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Training Fee(s) | Our then-current training fee for the type of training requested or other assistance/training requested by you and/or required under your Franchise Agreement (our "Training Fee") Currently, our Training Fee(s) are as follows: (i) $1,500 for the training that we provide and afford access to each individual that you wish to engage and appoint as an Authorized Instructor | On demand and as directed by us. | Please see Item 11 of this Disclosure Document for additional information. As previously noted in Item 1, as of the Issue Date we are willing to provide the System Instructor Training remotely to you and up to four (4) additional individuals that you determine to engage and wish to appoint as your initial Authorized Instructors of the Franchised Business, provided these individuals complete such training before undertaking or performing any Approved Services to any Franchised Business clientele. |
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| that will be eligible to provide Approved Services at your Franchised Business (the "Instructor Training"); and (ii) $500/day per trainer utilized in connection with all other training we provide beyond the Initial Training Program we conduct with you (plus any out-of-pocket costs we incur) | |||
| Technology Fee | Our then-current technology fee for any technology and related products/services we determine to associate with our then-current System (the "Technology Fee") Currently, our Technology Fee amounts to: (i) 2% of Gross Revenue generated by your Franchised Business over the preceding reporting period; and (ii) if applicable, an additional $12 to $15 per month for a second and each additional System-associated email account provided to or requested by System franchisee. | Same time and manner as your Royalty Fee | Currently, your Technology Fee is used to cover and/or defray the costs associated with various technology that we have associated and, in some cases, developed for us in connection with the System, including: (i) your initial System-associated email address; (ii) certain website maintenance; (iii) the required POS software and certain related services provided by our Current Billing/POS Provider; and (iv) possibly additional software that we are or may designate for use in connection with the operation of your Franchised Business (collectively, the "Required Software"). We may modify our Technology Fee – the amount and/or the technology services or Required Software access we determine to provide as part of said fee – upon at least 60 days' prior written notice via the Manuals or otherwise in writing. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, there is no explicit mention of fees associated with required upgrades to the Fitstop location itself within the provided excerpts. However, there are several other fees that a franchisee should be aware of.
For instance, Fitstop charges a Technology Fee, which is currently 2% of Gross Revenue, and an additional $12 to $15 per month for each additional System-associated email account. This fee covers costs associated with technology, website maintenance, POS software, and other software that Fitstop may designate for use in the Franchised Business. Fitstop may modify this Technology Fee with at least 60 days' prior written notice.
Additionally, franchisees may incur training fees. The training fee is $1,500 for the training provided to each individual the franchisee wishes to engage as an Authorized Instructor. There is also a fee of $500 per day per trainer utilized for training beyond the Initial Training Program, plus any out-of-pocket costs. Franchisees are also expected to pay between $1,500 and $2,000 per attendee for the annual convention, as well as cover the costs that attendees incur in connection with attending any such event.
Prospective Fitstop franchisees should inquire with the franchisor about potential upgrade requirements and associated costs to fully understand the financial obligations over the term of the franchise agreement. It is important to clarify whether upgrades to the physical location are required, and if so, what the estimated costs and payment terms would be.