Does the Fitstop agreement award the right to open multiple Franchised Businesses?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ay on such promises or representations and we will not be bound by them. YOU MUST ENSURE THAT ALL PROMISES AND REPRESENTATIONS FOR PRESENT AND FUTURE RESULTS AND RIGHTS, WHETHER ABSOLUTE OR CONTINGENT, ARE CONTAINED IN THE FRANCHISE AGREEMENT OR THEY MAY BE FOREVER LOST.
- ©2024 Fitstop USA, Inc. 21.4 This Agreement awards the right to open a single Franchised Business within the Designated Territory detailed in Schedule 2 to this Agreement and, except for the territorial rights descirbed
in Section 2.2 hereof, nothing in this Agreement grants any kind of "exclusive," "protected," or other territorial rights in any contiguous or other geographical area.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the standard agreement grants the right to open only a single Franchised Business. Specifically, the agreement awards the right to open one Fitstop location within a Designated Territory, as detailed in Schedule 2 of the agreement.
However, a franchisee can request the opportunity to open additional Fitstop franchises within their Designated Territory. This requires written notice to Fitstop, but the FDD states that Fitstop is under no obligation to grant approval for additional locations. Any agreement to allow additional franchises would need to be formalized as an addendum to the original franchise agreement.
This policy means that a prospective Fitstop franchisee should not assume they can automatically expand to multiple locations. The right to open additional units is subject to Fitstop's approval, which is not guaranteed. A potential franchisee interested in multi-unit ownership should discuss this possibility with Fitstop and seek to negotiate terms for future expansion rights before signing the initial agreement.