fee

Are there any fees related to insurance that are mentioned in Item 6 of the Fitstop FDD?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 6: OTHER FEES]

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.
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.

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Transfer-Related Fees
  • $5,000 if a System franchisee wishes to amend the territory and/or site selection area to a different geographical area wherein it has located a site it wishes to propose and, if approved by us, secure;
  • a reduced fee amounting to $750 in the particular situation where an existing System franchisee is (a) an individual that wishes to assign to a wholly-owned entity that will serve as the "Franchisee" moving forward, or (b) looking to effectuate a transfer in the event of death or disability, which will be used to help defray the administrative/legal costs that we will incur in this context; or
  • $25,000 (per franchise) in all other assignments where System franchisee wishes to transfer the franchise agreement, Franchised Business or its operating assets and/or any ownership interest in the Franchisee entity
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Renewal Fee $20,000 On each renewal of the term of the Franchise Agreement. Renewal is optional and there are other pre- conditions you must meet or satisfy in order for us to approve any request for renewal in connection with the franchise rights awarded under your original Franchise Agreement.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2024 FDD)

Based on the 2024 Fitstop Franchise Disclosure Document, Item 6, which covers other fees, does not specifically mention any fees directly related to insurance. The item details various fees such as training fees, technology fees, transfer-related fees, and renewal fees, but it does not outline any charges or costs associated with insurance requirements or coverage.

Prospective Fitstop franchisees should be aware that while insurance-related fees are not listed in Item 6, insurance coverage is typically a requirement for operating a franchise. This means franchisees will likely need to obtain and maintain certain insurance policies to protect their business, employees, and customers. The costs associated with these insurance policies would be separate from the fees outlined in Item 6.

Given the absence of specific insurance fees in Item 6, it is crucial for potential Fitstop franchisees to inquire about the required insurance coverage and the estimated costs. This information will help them accurately assess the total investment and operational expenses associated with the franchise. It would be prudent to discuss insurance requirements with the franchisor and to obtain quotes from insurance providers to understand the financial implications fully.

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.
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