What approval is needed if a Fitstop franchisee wants to expend more than the suggested amount for rent?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Rent for each franchised business is dependent on size, quality and position of Premises and local market conditions. This amount will vary depending on Lease negotiations between the landlord and the franchisee (as tenant) and, again, our standard franchise offering and Chart above assumes that your Premises will be between 1,800 and 3,000 square feet is size. For certain premium location(s) in urban areas, you or other System franchisees may choose to expend more than the amounts suggested herein but such a decision would need to be approved by Franchisor and may be beyond the scope of Franchisor's standard franchise offering (and this range disclosed this Chart).
Source: Item 7 — TEM 7: ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee chooses to spend more than the suggested amount on rent for premium locations, particularly in urban areas, the franchisee would need to get approval from Fitstop. The standard franchise offering assumes the premises will be between 1,800 and 3,000 square feet in size.
This requirement means that while Fitstop allows for some flexibility in location choice, it retains control over significant financial decisions related to the premises. This ensures that the franchisee's choices align with Fitstop's brand and financial standards.
For a prospective franchisee, this implies that while they can negotiate lease terms, any decision to exceed the suggested rent, especially for a premium location, must be vetted and approved by Fitstop. This could impact the franchisee's ability to secure a desired location if it falls outside the franchisor's financial expectations.