Is there a minimum Gross Revenue threshold before a Fitstop franchisee must pay the Technology Fee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
13.4 Technology-Related Recurring Fees and/or Amounts.
- 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.
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 2% of the Gross Revenue generated by the Franchised Business. The FDD does not specify a minimum gross revenue threshold that must be met before a Fitstop franchisee is required to pay the Technology Fee. The Technology Fee is collected 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.
Gross Revenue is defined as the total amount of consideration, whether cash, credit, or payment in kind, received for all goods sold and services, including membership fees and other revenue generated from the sale of approved services and products. This also includes barter, which is the exchange of tuition for services or products, but excludes refunds, uncollectible debts, taxes collected and paid to a tax authority, and tuition credits for staff children.
Prospective Fitstop franchisees should note that Fitstop may modify the Technology Fee for System franchisees upon 60 days' prior written notice via the Manuals or otherwise. It is important to review the Manuals and any written notices from Fitstop to stay informed about any changes to the Technology Fee or its payment terms.