Who bears the cost of complying with the relocation requirements for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.9.4 You acknowledge and agree that: (1) compliance with this section is at your sole cost and expense; (2) it is in the best interests of both parties that the Franchise be open for trade from the new Premises as soon as possible; and (3) subject to relevant laws, the new Premises are to be fitted out at your cost to conform with the then prevailing image and otherwise in accordance with this Section.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for all costs associated with relocating their franchise. This includes all expenses incurred to comply with the relocation requirements.
Specifically, the franchisee bears the sole cost and expense of complying with the relocation requirements. This encompasses identifying a suitable new premises, securing Fitstop's approval, and fitting out the new location to conform to Fitstop's prevailing image and standards. The franchisee is responsible for all build-out costs at the new premises.
This means that if a Fitstop franchisee's lease expires, the premises are unusable, or Fitstop deems the location detrimental to the franchise's potential, the franchisee must cover all expenses related to moving to a new approved location. This could involve significant and unexpected costs, so prospective franchisees should carefully consider this financial responsibility.