Am I entitled to develop additional Fitstop franchises beyond the Franchised Business location?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 No Additional Franchises and/or Franchise Rights. Unless we agree otherwise in a form of addendum to this Agreement, you are not entitled to any right or option to develop any additional Franchises at any location other than the Franchised Business.
During the Term, you may, by written notice to us request our approval for you to open one or more additional franchises in your Designated Territory, but we are under no obligation to award you the same.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally not entitled to develop additional Fitstop franchises beyond their initial Franchised Business location unless Fitstop agrees otherwise in writing via an addendum to the Franchise Agreement.
However, a franchisee can request approval from Fitstop to open additional franchises within their Designated Territory. Fitstop is under no obligation to grant this request. This means that while the Franchise Agreement does not automatically grant the right to expand, it does allow for the possibility of future expansion subject to Fitstop's approval.
This clause protects Fitstop's ability to control its brand's growth and market saturation. For a prospective franchisee, this means that while you may be focused on operating your initial Fitstop location, the opportunity to expand within your territory is possible, but not guaranteed. It would be prudent to discuss Fitstop's criteria for awarding additional franchises and their long-term development plans for your target market during your due diligence.