Does the Fitstop agreement specify any activities that are expressly prohibited?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
om members who have placed orders via the internet or from another franchisee in the network.
- 6.13 Social Media Use and Participation. You must adhere to our social media policy as described more fully in the Manual(s). Any social media activity proposed to be undertaken by you that is not in conformance with the Manual(s) must be approved in writing by us in advance. You must comply with our directions in relation to such activity and if the relevant social media activity is not removed after being directed by us to be so removed, you authorize us to remove any social media activity that is not approved or authorized by us. You must not disparage us or any of our other franchisees on social media and must not post anything to social media that brings harm or disrepute to the Franchise System. Doing so is a material breach of this Agreement.
- 6.14 Member Loyalty Program. We may, in our discretion, establish and operate a Member Loyalty Program from time to time. You must participate fully in any Member Loyalty Program which we decide to establish and implement. The terms on which you will participate in the Member Loyalty Program will be set out in the Manual(s) from time to time but for the avoidance of doubt will be necessary to protect or promote our legitimate commercial interest. You must purchase from us the cards, application forms, and other materials for use in connection with the Member Loyalty Program prior to its commencement date and as and when required in the operation of the Franchise in accordance with the Manual(s). We may, in our reasonable discretion, by written notice to you at any time: (1) vary the terms of the Member Loyalty Program or (2) withdraw from supply the cards, application forms and other materials for use in connection with Member Loyalty Program.
- ©2024 Fitstop USA, Inc. 6.15 Ongoing Consultation. We will make staff available to you for consultation on operations, advertising, and promotion, and administration, as we determine appropriate in our discretion.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, several activities are expressly prohibited for franchisees. Fitstop franchisees must not disparage Fitstop or any of its other franchisees on social media, and they must not post anything that brings harm or disrepute to the Fitstop franchise system. Doing so constitutes a material breach of the Franchise Agreement.
Fitstop franchisees are also prohibited from using the Franchise Agreement as security for a loan or any similar encumbrance without Fitstop's specific written consent. Additionally, franchisees cannot grant sub-franchises or seek to franchise, license, or permit others to use the Fitstop franchise or any rights, assets, or property derived from the agreement.
Involuntary transfers of the Franchise Agreement or the assets of the franchise, such as through legal processes, are not permitted, are not binding on Fitstop, and can lead to the termination of the agreement. Furthermore, Fitstop franchisees must conduct the franchise only from the approved premises and cannot change the premises without prior written consent from Fitstop. These restrictions are designed to protect the Fitstop brand and maintain consistency across all franchise locations.