The most common question from finance and procurement is not the price. It is what happens if this does not work. This article covers the commercial frame around FitKit: what you commit to, how invoicing works, and what to check with your own accountant.

What you actually commit to

The agreement runs for one year and renews automatically. Either party can terminate it without cause at any time by giving 30 days notice, not only at the end of the annual term, and with no termination fee.

Two additional exits exist. Either party can terminate immediately if the other breaches the agreement and does not remedy it within three days of being asked. And the company can terminate immediately if the app is non-functional for more than 24 hours for reasons on FitKit's side.

Separately from all of that, the company manages its own employee list and allocations in the HR panel. You can reduce allocations, remove employees or stop the benefit entirely at any time without terminating the agreement. The agreement mainly regulates prices, payment terms, the parties' obligations and the transfer of personal data. It is not a commitment to a fixed volume.

The two billing bases

This is the single most important thing to settle before you sign, because it changes your real cost more than the credit price does. Which basis applies to you is set in your contract.

• Per allocated credit. You pay for the credits issued to employees that month, whether or not they were used. Your cost is predictable and equals the allowance times the number of enrolled employees.
• Per spent credit, or pay per use. The allowance is a ceiling rather than a purchase, and you are invoiced only for credits spent on completed check ins. Unused allowance is not charged, so you can set a generous ceiling without paying for it, but the monthly invoice varies with usage.

Roughly half of allocated credits go unspent in a typical month, so the two bases can produce very different invoices for the same allowance. Ask for both figures before deciding.

One practical consequence of the allocated basis: if an employee leaves and you do not update the list in time, you still pay for the credits already issued to them. Keeping the list current before the 1st of the month is the cheapest control you have.

Is there a minimum number of employees?

No. There is no minimum headcount to start. Headcount can affect package pricing, so a larger group may qualify for different rates, but a small team is not excluded.

When you are invoiced

• Credits. Invoiced in arrears, in the current month for the credits of the previous month, typically by the 5th.
• Subscriptions. Invoiced at the start of the month, since a subscription is a fixed monthly cost.

Payment terms are typically 15 days from the invoice date. Up to 30 days is possible where your own internal policies require it and this is agreed in the contract.

Invoices are sent electronically as PDF to the contact address in the agreement, so keep that address current.

VAT and whether you can recover it

Whether VAT on a FitKit invoice is recoverable depends on the tax rules in your country and on your company's own activity and VAT status. Those two things vary enough that a general answer would be misleading.

We will not give you a blanket claim here. Ask your accountant, or ask us and we will provide the invoicing details for your country and entity so your accountant can assess it properly before you commit.

What to settle before signing

• Which billing basis applies, allocated or spent.
• Cost per employee per month, maximum monthly cost at your headcount, and expected cost at a realistic participation rate.
• Whether you are on credits or subscriptions, since it changes when you are invoiced.
• Payment terms.
• Who in your company administers the HR panel and keeps the employee list current.
• The data processing terms, which are part of the agreement.

Want the invoicing and contract terms for your country in writing before a decision? Ask FitKit and we will send them with no obligation.