What is the condition for Fitstop to agree to amend the boundaries of the Designated Territory?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
As part of our current standard offering, we expect and intend to award you a geographical area wherein: (i) you must locate and secure an approved Premises; and (ii) we will afford you certain territorial rights as disclosed more fully in Item 12 of this Disclosure Document (your "Designated Territory"). Once you secure an approved Premises within that Designated Territory within the timeline set forth in your Franchise Agreement, we may mutually agree to amend the boundaries of the Designated Territory in a separately-signed addendum to provide territorial rights within the area that immediately surrounds the actual Premises where the Franchised Business is being operated.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–9)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may mutually agree to amend the boundaries of the Designated Territory under specific conditions. The franchisee must first locate and secure an approved Premises within the Designated Territory within the timeline set forth in the Franchise Agreement.
Once the franchisee secures an approved Premises within the initial Designated Territory and meets the timeline specified in the Franchise Agreement, Fitstop may then mutually agree to adjust the territory boundaries. This amendment would be formalized through a separately-signed addendum to the Franchise Agreement. The purpose of this amendment is to provide territorial rights within the area that immediately surrounds the actual Premises where the Franchised Business is being operated.
This condition ensures that Fitstop franchisees have a physical location established before any adjustments are made to their territory. This protects Fitstop's interests by ensuring franchisees are committed to a specific location before expanding their territorial rights. It also benefits the franchisee by potentially allowing them to secure a larger, more viable territory once their business is established.