Already signed
David Lloyd 20%
Of net revenue, on every stream, for the whole Milton Keynes pilot. That share does not move.
FITCO
Milton Keynes · Padel court · HEAD · November 2026
The padel machine.
HEAD products only.
FITCO buys the HEAD products and fills them in the one padel machine at Milton Keynes. FITCO receives 65% of the net on those sales, plus the VAT. The drinks and snacks in that machine, the other machines, and any other venue, sit outside this proposal.
This offer
One machine
The padel court machine. HEAD products that FITCO buys and owns. No other machine is included.
The share
65% of net, plus VAT
65% of the full net, and the VAT on those sales. Bright.Blue takes 15% of the same net, and the card fee. David Lloyd takes 20%.
David Lloyd figures are the pilot agreement. FITCO figures are the proposal in this deck.01
Pilot agreement · Milton Keynes Club
What is already agreed
One club. Up to eight machines.
Three months from go-live.
Scope
- Venue. David Lloyd Milton Keynes, Livingstone Drive. Up to 8 devices, plus online retail.
- Indicative locations. Gym and padel (Europa Double), club-to-gym hallway (Blinx), pool (Callisto).
- Categories. Wellness and beauty, food and beverage, racket sports essentials, cosmetics and essentials.
- Who owns the machines. Bright.Blue. David Lloyd provides space, power, connectivity and access.
- Who operates today. Bright.Blue, as a managed service: product, stock, restock, payments and media.
Term
- Initial period. Three months from go-live. Target go-live is December 2026.
- Extension. One further period of up to three months, only if both sides agree in writing. Same commercials.
- If it works. A phase-two pilot at up to five further clubs. David Lloyd decides, club by club, on a new agreement each time.
- If it stops. Machines come out. David Lloyd is not obliged to roll out.
Pilot Agreement between Bright.Blue UK Limited and David Lloyd Leisure Limited. The FITCO proposal that follows is narrower than this pilot: the padel court machine and HEAD products only.02
Section 4 · fixed for the pilot
David Lloyd commercial terms
20% of net revenue.
£28,000 toward the build.
20%David Lloyd share of net revenue, on every stream, for the pilot and any extension.
£28,000Excl. VAT. David Lloyd’s contribution to customisation and mobilisation. Non-refundable.
£0No device activation fee. No ongoing platform fee during the pilot.
£2,400Per device, only if the KPIs are met and David Lloyd chooses not to continue.
| Stream | David Lloyd | Bright.Blue | Paid |
|---|---|---|---|
| Physical product | 20% of net | 80% of net | Monthly, within 30 days of the next month |
| Online product | 20% of net | 80% of net | Same reconciliation |
| Retail media and DOOH | 20% of net | 80% of net | Same reconciliation |
| Local ads | 20% of net | 80% of net | Same reconciliation |
These are the David Lloyd terms for the whole pilot. FITCO is paid by Bright.Blue, out of Bright.Blue’s share, and only on HEAD product FITCO owns on the padel machine. The £28,000 is invoiced 40% on signing, 40% on installation, 20% on acceptance. If KPIs are missed, there is no early termination fee. Removal logistics are capped at £1,000 per device. Net is defined on the following slides.03
Scope of this proposal
What FITCO is being offered
One machine. HEAD products.
This pilot only.
In this proposal
- Machine. One machine. The padel court Hyperion at Milton Keynes.
- What FITCO buys and fills. The HEAD products in it: eight rackets, the balls, the grips and the bands.
- Share. On those sales only. 65% of net, plus the VAT. Physical retail sales only.
Outside this proposal
- Same machine, other products. The drinks and snacks stay with Bright.Blue: Lucozade Sport, WOW Hydrate, Vitamin Well, Re:Water, Harrogate, FIJI, Barebells, KIND and Optimum Nutrition. FITCO does not buy them, fill them, or share in them.
- Other machines and venues. Out of scope. Gym, hallway, pool, club room, and any club beyond Milton Keynes.
- Also out. Reformer socks, Yogi Bare, online, and retail media.
Physical sales only. FITCO participates in the physical retail sales of the HEAD products it buys. It has no share of the drinks and snacks in the padel machine, no share of online, and no share of retail media, including when HEAD or another Pentland brand is on the screen. There is no reserved slot.
FITCO enters as Bright.Blue’s contractor for this machine. David Lloyd is not asked to pay FITCO, and this deck is not an offer of the wider estate.04
Physical net on HEAD sales
How the 65% is calculated
65% of the net, plus the VAT.
The card fee sits with Bright.Blue.
A £12 HEAD sale, illustrative
VAT on the sale, paid to FITCO£2.00
Card fee, Bright.Blue’s line£0.30
Net£9.70
David Lloyd, 20% of net£1.94
Bright.Blue, 15% of net£1.46
FITCO, 65% of net£6.30
FITCO receives, 65% plus VAT£8.30
What each line is
The bar is the net only. 20%, 15% and 65% are three slices of the same £9.70, and they add to 100%.
The VAT is not inside the 65%. FITCO receives it as well, because FITCO pays VAT when it buys the stock.
The card fee is not inside the 15%. It is Bright.Blue’s line, and Bright.Blue pays it to the acquirer. 65% of the £7.76 left after David Lloyd would be £5.04. That is not the offer.
Pennies rounded. The £0.30 fee is illustrative, at 3% of the ex-VAT price. A live sale uses interchange plus 2.5%. FITCO’s £6.30 is before its cost of goods. Paid monthly by Bright.Blue.05
Definition of net
What the percentage is applied to
VAT to FITCO.
The card fee to Bright.Blue.
The order on a HEAD sale
- 1. Gross. The member pays the price on the machine, including VAT.
- 2. VAT. Paid to FITCO, on top of FITCO’s 65%. FITCO pays VAT when it buys the stock, so FITCO keeps the VAT on the sale and accounts for it.
- 3. Card fee. Bright.Blue’s line, on top of Bright.Blue’s 15%. Interchange, scheme and acquiring fees, plus 2.5%. Bright.Blue pays the acquirer.
- 4. Net. What remains. David Lloyd 20%, Bright.Blue 15%, FITCO 65%, of that same figure.
So the split reads
- David Lloyd. 20% of net. The same net as the pilot agreement. Unchanged.
- Bright.Blue. 15% of net, and the payment processing fees.
- FITCO. 65% of net, and the VAT. Physical HEAD sales only.
- Nothing else. No share of the drinks and snacks in the padel machine. No online. No media. No delivery or agency deduction on these sales.
David Lloyd’s 20% is still calculated on net after VAT and after the card fee. The VAT is then paid to FITCO, and the card fee is Bright.Blue’s cost. Bright.Blue reconciles it monthly.06
Stock, price, data, fill
FITCO owns the stock. Bright.Blue owns the machine.
Risk follows ownership.
Stock risk
- FITCO carries the cost of HEAD stock it buys, expiry, unsold stock, and product it damages while filling.
- Bright.Blue carries the machine, vandalism, machine faults, and HEAD stock lost or damaged because the machine failed, mis-vended, or was broken into.
- Insurance of the machine stays with Bright.Blue.
Price, range, data
- Price. Bright.Blue sets the retail price with David Lloyd. FITCO proposes its cost and a recommended price.
- Range. The HEAD planogram for the padel machine, approved by Bright.Blue and David Lloyd. FITCO fills that planogram.
- Data. FITCO receives SKU-level unit sales and stock levels for those HEAD SKUs. No member data. No media rates. No data from the other machines.
Restocking
- Obligation. FITCO replenishes the HEAD products on the padel machine.
- Frequency. Agreed in writing before go-live. This proposal does not set a number of visits.
- Penalty. There is no out-of-stock penalty.
- The 95% figure in the pilot annex is a David Lloyd KPI for the pilot. It is not a FITCO target and it is not a FITCO penalty.
David Lloyd’s responsibility for the machine stays as written in the pilot agreement. This proposal does not add a stock liability for the club.07
Term and the ask
A pilot between Bright.Blue and FITCO
A pilot contract.
One machine. This period.
What we need back
1
Confirm FITCO will buy the HEAD products and fill them in the padel machine, at 65% of net plus the VAT.
2
Confirm the drinks and snacks in that machine stay with Bright.Blue, and that FITCO takes no share of them.
3
Confirm the visit cadence. No out-of-stock penalty. The contract is a pilot between Bright.Blue and FITCO, and it ends with the Milton Keynes pilot.
Either side can stop on 30 days’ written notice. An extension of the David Lloyd pilot does not extend this contract unless both sides agree that in writing. It does not cover another machine or another club.
Bright.Blue
Adam Smith
adam.smith@bright.blue
+44 7714 492134
The agreement with FITCO is a pilot, on the same clock as Milton Keynes. It is not a supply contract for the estate.
David Lloyd’s 20% is the Milton Keynes Pilot Agreement. The FITCO split is this proposal: physical HEAD sales, in the padel machine, for the pilot.08