What actions must a Fitstop franchisee take to effect the assignment of the lease to Fitstop or its nominee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.5 Where you have entered into a lease in respect of the Premises: (1) we may at any time during the Term notify you in writing that we require you to assign the lease of the Premises to us or our nominee; and (2) you must within seven (7) calendar days of such request assign the lease of the Premises to us or our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop notifies a franchisee in writing that they require the assignment of the premises' lease to Fitstop or its nominee, the franchisee must assign the lease within seven calendar days of the request.
Specifically, the franchisee is required to sign all documents and take all necessary steps to complete the assignment of the lease to Fitstop or its nominee within that seven-day timeframe. This implies the franchisee must cooperate fully and promptly with Fitstop to ensure the lease assignment is executed correctly and efficiently.
This requirement is a significant obligation for the franchisee. Failure to comply within the specified timeframe could potentially lead to a breach of the franchise agreement, with possible repercussions. Prospective franchisees should carefully consider this obligation and ensure they are prepared to act swiftly should Fitstop exercise its right to require lease assignment.