Am I required to perform the terms of any lease agreement for the Fitstop premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
9.3 Lease of Premises.
- 9.3.1 You are solely responsible for locating, proposing and securing a lease for the Premises we approve in writing prior to you securing the right to occupy and use such Premises for purposes of developing and operating the Franchised Business.
- 9.3.2 You must ensure that the lease for the Premises (the "Lease") contains and integrates the provisions and covenants set forth in this Section or that we designate in the Manuals at any time prior to you securing any Premises (the "Prescribed Lease Provisions"), with said Lease subject to our review and approval with respect to any markup or negotiated changes to said provisions as part of our overall right to approve the Premises itself.
- 9.3.3 You must perform and observe at all times the terms (including conditions and covenants) of any lease or other agreement affording you access to and use of the Premises.
- 9.3.4 You will be liable to pay all amounts owing in connection with the Lease and Premises governed thereby, and your failure to cure any defaults you have with respect to Tenant's (or its guarantors) monetary or non-monetary obligations under the Lease within the applicable cure periods set forth therein shall constitute a material default and, if the Lease is terminated or subject to termination, grounds for immediate termination of this Agreement by us upon written notice to you.
- 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, as a franchisee, you are responsible for adhering to the terms of the lease agreement for your approved premises. Fitstop requires you to locate, propose, and secure a lease for the premises, subject to their written approval. The lease must incorporate specific provisions and covenants outlined by Fitstop, and any changes to these provisions are subject to Fitstop's review and approval.
You are obligated to fulfill all terms, conditions, and covenants of the lease agreement, including the payment of all associated amounts. Failure to meet your monetary or non-monetary obligations under the lease, or if the lease is terminated or subject to termination due to your default, constitutes a material default under the Franchise Agreement and may lead to its immediate termination by Fitstop.
Fitstop retains the right to request an assignment of the lease to themselves or their nominee at any point during the term of the agreement, and you are obligated to comply with this request within seven calendar days. This includes signing all necessary documents and taking the required steps to effect the assignment. These stipulations ensure Fitstop's control over the premises and protect their interests in the event of franchisee default or termination.