How will Fitstop communicate adjustments to the Designated Territory boundaries to the Fitstop franchisee if no premises has been secured?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ng your Designated Territory.
In certain situations where you have not secured an approved Premises at the time your Franchise Agreement is executed, we may determine to (i) designate a Designated Territory wherein you must locate and secure that Premises, and (ii) adjust the boundaries of the Designated Territory to a comparable geographical region that immediately surrounds the Premises, which we will provide to you in writing as part of our response to our site proposal so you can evaluate before securing the proposed site (if and as we determine appropriate). Otherwise, we may not modify the boundaries of your Designated Territory unless the parties mutually agree to the same in a separate agreement.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee has not secured an approved premises when the Franchise Agreement is executed, Fitstop may designate a territory where the franchisee must locate a premises. Fitstop may then adjust the boundaries of this designated territory to a comparable geographical region that immediately surrounds the premises.
Fitstop will provide these boundary adjustments in writing as part of their response to the site proposal. This allows the franchisee to evaluate the adjusted territory before securing the proposed site. This adjustment is conditional, as Fitstop determines if it is appropriate.
Once Fitstop and the franchisee agree upon a premises, Fitstop will designate the premises and any adjustments to the designated territory in an amendment to the Franchise Agreement. The franchisee is required to execute this amendment around the time they execute a lease for the premises. This ensures that the final territory is officially documented and agreed upon by both parties.