When transferring a Fitstop franchise, is the payment of an Application Fee required?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
rned transaction and any subsequent proposed sales or transfers by you. You shall provide us with written notice of any proposed transfer and shall comply with the provisions of the Right of First Refusal.
- 15.7 Included with your notice of proposed transfer, unless exempted, shall be your nonrefundable Application Fee of $500 payable to us. The Application Fee will be credited toward the Transfer Fee, as defined above, if the transferee is approved but will otherwise be forfeited to defray our expenses in connection with processing the application. The Application Fee is subject to upward adjustment by any change in the Consumer Price Index specified in this Agreement between its date and the date of the transfer.
- 15.8 Subject to our Right of First Refusal, you may transfer or assign any rights under this Agreement upon our written consent. We may condition transfer on such factors as:
- ©2024 Fitstop USA, Inc.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, an Application Fee is generally required when transferring a franchise. Specifically, a nonrefundable Application Fee of $500 is typically due with the notice of the proposed transfer. This fee is payable to Fitstop.
The Application Fee will be credited toward the Transfer Fee if Fitstop approves the transferee. However, if the transferee is not approved, Fitstop will keep the Application Fee to cover expenses related to processing the application. It's important to note that the Application Fee is subject to upward adjustment based on changes in the Consumer Price Index from the date of the agreement to the date of the transfer.
There are some exceptions to the Application Fee requirement. For example, the transfer of a Fitstop franchise from an individual or partnership to a corporation wholly-owned by the preexisting owner(s) does not require the payment of the application or transfer fees. Also, if the transfer is to a named beneficiary or to the spouse or an adult child of an individual, transfer fees are not payable. However, the transferring owner(s) must remain personally responsible for the performance of the terms and conditions of the Franchise Agreement.