Who bears the costs associated with relocating a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.9.1 If the lease expires during the Term or is terminated through no fault of you, the Premises are destroyed or are unable to be used for at least 70 consecutive calendar days, or if in our reasonable opinion, there is a change in the character of the location of the Premises which is detrimental to the potential of the Franchise to warrant relocation, then you may nominate new premises, which will be subject to the prior written approval of us or we may endeavor to locate a suitable alternative new Premises.
- 9.9.2 If relocation is approved by us, you must propose a suitable new premises for approval by us by no later than 70 calendar days from the date on which you vacate the Premises.
- 9.9.3 The parties will negotiate and agree in good faith the time in relation to your entering into the lease in respect of the new Premises and relocating the Franchise (including the build-out of the new Premises in accordance with Franchise Agreement).
- 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. Specifically, if the lease expires, is terminated without fault of the franchisee, the premises are unusable for at least 70 consecutive calendar days, or if Fitstop deems there's a detrimental change to the location, the franchisee may nominate new premises, subject to Fitstop's approval. Fitstop may also try to locate a suitable alternative premises.
The franchisee must propose a new location within 70 calendar days of vacating the original premises, subject to Fitstop's approval. The timing of the new lease and relocation will be negotiated in good faith between both parties. However, the franchisee bears the sole cost and expense of complying with the relocation requirements.
This includes the cost of fitting out the new premises to conform with Fitstop's prevailing image and standards. The FDD emphasizes that it is in the best interest of both parties for the franchise to resume operations at the new location as quickly as possible, with the franchisee bearing the financial burden of ensuring this happens.