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Under what conditions can Fitstop advise a franchisee in writing to not process payments on their behalf?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 13.9 Related Acknowledgements. The parties acknowledge and agree that (i) all payments made by members in respect of Approved Products and/or Approved Services which you provide to members from your Franchise must be processed through our online ordering system via our website or our application; (ii) we may, in our reasonable discretion, allocate discounted or free memberships to members who work at our headquarters, other team members, corporate partners, athletes and ambassadors and sponsors of our brand; (iii) there is no exclusivity of members and members may openly choose to deal with any franchisee, regardless of the member's location; (iv) subject to the below, all payments received by us from members who pay for Approved Products and/or services which you provide from your Franchise through our online ordering system via our website or the application are accepted by us for and on your behalf unless advised otherwise by us in writing at any time during the Term; and (v) all amounts from the sale of the Approved Products and/or services which you provide from your Franchise that we receive from members through our online ordering system via our website or the application are set up to be paid by a third party vendor to you on the third calendar day of each month less:

  • 13.9.1 any merchant fees that we incur upon receipt of the payments referred to within this clause;

  • 13.9.2 any merchant fees that we incur when transferring such payments to you; and

  • 13.9.3 any amount payable by you to us under this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, all payments for approved products and services provided by a franchisee must be processed through Fitstop's online ordering system via their website or application. Fitstop accepts these payments on behalf of the franchisee unless they advise otherwise in writing.

Fitstop retains the right to direct a franchisee in writing to not process payments on their behalf at any time during the term of the agreement. This gives Fitstop considerable control over the payment process and allows them to make changes as they see fit.

Franchisees should be aware that Fitstop deducts merchant fees incurred upon receipt of payments and when transferring payments to the franchisee, as well as any amounts payable to Fitstop under the Franchise Agreement, before disbursing the remaining funds. This could impact the franchisee's revenue and profitability, so understanding these deductions is crucial.

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.