What action can Fitstop take if a spouse receiving transferred property or the Fitstop Franchise Agreement is not actively engaged in the operation of the Franchise?

According to Fitstop's 2024 Franchise Disclosure Document, if a Fitstop franchise or associated property is transferred to a spouse as part of a divorce or similar legal proceeding, and that spouse does not actively engage in operating the franchise, Fitstop has specific rights. Fitstop can declare that the transfer is subject to all the standard transfer terms outlined in the Franchise Agreement. This means the spouse would need to meet all the usual requirements for a franchise transfer.

Furthermore, Fitstop reserves the right to exercise its right of first refusal in this situation. This allows Fitstop to essentially step in and purchase the franchise or property themselves, preventing the transfer to the inactive spouse. This provision ensures that Fitstop maintains control over who operates their franchises and can ensure that all franchisees are actively involved in the business.

This policy is important for maintaining the quality and consistency of the Fitstop brand. By requiring active involvement from franchisees, Fitstop aims to ensure that each location is managed effectively and adheres to their standards. The right of first refusal gives Fitstop an additional layer of protection, allowing them to prevent transfers to individuals who may not be suitable or committed to running the franchise properly.