What is the total estimated initial investment for a Fitstop franchise, considering the initial franchise fee (Item 5) and other expenses listed in Item 7?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
IAL INVESTMENT**
| YOUR ESTIMATED INITIAL INVESTMENT | |||||
|---|---|---|---|---|---|
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Payment is to be Made | |
| Initial Franchise Fee1 | $50,000 | Lump sum | Upon execution | Us | |
| Initial Marketing Spend2 | $10,000 | Lump sum | Prior to opening | Approved Supplier for digital/online marketing; Third-Party Provider for other expenditures | |
| Other Initial Marketing and Promotional Activities2 | $1,000 to $10,000 | As arranged | As invoiced or agreed | Approved Supplier and/or other Third-Party Providers (videographer, etc.) | |
| Training-Related Costs and Expenses3 | $1,000 to $7,500 | As arranged | Prior to Opening | Third-Party Providers for Travel, Lodging, Meals and Local Transportation | |
| Site Selection Assistance | $0 to $10,000 | Lump sum | Prior to opening | Approved Supplier or other Third-Party Provider | |
| Security Deposit and other Pre-Opening Amounts under Lease for Approved Premises5 | $8,000 to $75,000 | As arranged between you and the landlord. | As negotiated and agreed in the lease | Third-Party Landlord | |
| Design and Layout | $3,000 to $10,000 | As arranged | Prior to opening | Approved Supplier(s) and/or Other Third-Party Provider(s) | |
| Operational Equipment and | $70,000 to $100,000 | Lump sum | Prior to opening | Approved Supplier(s) | |
| Supplies Package6 | |||||
| Leasehold Improvements7 | $100,000 to $325,000 | As arranged | As invoiced | Third-Party Contractor and Other Third-Party Vendors/Providers | |
| Signage: Exterior/Interior8 | $10,000 to $50,000 | As agreed | As invoiced | Approved Supplier(s) | |
| Computer System and Required Software – Initial Costs9 | $3,000 to $7,000 | Lump sum | As invoiced and prior to opening | Approved Supplier(s) | |
| Other FFE | $0 to $10,000 | As arranged | As incurred | Approved Supplier(s) and/or other Third-Party Vendor(s) | |
| Utility Deposits (water, | $1,000 to $3,000 | As | Prior to opening | Utility Providers | |
| electricity, gas) | incurred | ||||
| Insurance Premiums | $2,000 to $10,000 | As arranged | As incurred and invoiced | Third-Party Insurance Carrier/Provider | |
| Business Licenses & Permits | $500 to $10,000 | Lump sum | Prior to opening | Local, state, and/or federal government agencies |
| Professional Fees | $1,000 to $10,000 | As arranged | As invoiced | Third-Party Professional(s) – Lawyer and Accountant |
|---|---|---|---|---|
| Music Licensing | $500 to $1,000 | As arranged | Ongoing basis | Approved Supplier |
| Subscription10 | ||||
| (for play, not synch) | ||||
| Other Miscellaneous Pre- Opening Expenditures | $0 to $5,000 | As arranged | As incurred | Approved Supplier(s) and Third-Party Suppliers/Providers |
| Rent – 4 Months after | $20,000 to $50,000 | Lump sum | Prior to opening | Third-Party Landlord |
| opening11 | ||||
| Additional Funds – 4 Months Following Opening12 | $25,000 to $70,000 | Various | As incurred | Personnel of the Franchised Business; Approved Supplier(s) and/or Other Third-Party Providers; other vendors; state agencies; etc. |
| Total Estimated Initial | $306,000 to $823,500 | |||
| Investment |
Explanatory Notes to Item 7 Chart Above
General Note.
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the estimated total initial investment to open a Fitstop franchise ranges from $306,000 to $823,500. This includes a $50,000 initial franchise fee that must be paid in a lump sum upon the execution of the Franchise Agreement. This fee is non-refundable and is considered fully earned by Fitstop once the agreement is signed.
In addition to the initial franchise fee, the total investment includes various other expenses. These include initial marketing expenses of $10,000, other marketing and promotional activities ranging from $1,000 to $10,000, and training-related costs between $1,000 and $7,500. Site selection assistance can cost anywhere from $0 to $10,000, while security deposits and pre-opening lease amounts range from $8,000 to $75,000. Design and layout costs are estimated to be between $3,000 and $10,000, and the operational equipment and supplies package ranges from $70,000 to $100,000.
Furthermore, leasehold improvements can range significantly from $100,000 to $325,000, and signage costs range from $10,000 to $50,000. The initial costs for the computer system and required software are between $3,000 and $7,000. Other furniture, fixtures, and equipment (FFE) can cost up to $10,000, while utility deposits range from $1,000 to $3,000. Insurance premiums are estimated to be between $2,000 and $10,000, and business licenses and permits can cost from $500 to $10,000. Professional fees can range from $1,000 to $10,000, music licensing costs between $500 and $1,000, other miscellaneous pre-opening expenditures can be up to $5,000, and rent for four months after opening can range from $20,000 to $50,000. Finally, additional funds for the first four months following the opening are estimated to be between $25,000 and $70,000.
Prospective franchisees should carefully review these figures, considering local conditions and the local economy, and consult with an accountant to ensure they are adequately prepared for the initial investment required to start a Fitstop franchise. The FDD advises that these figures do not account for debt services or any salary for the Franchise Operator or any other Franchise Owner.