What are the conditions under which the Fitstop franchisor can require the franchisee to upgrade or remodel their premises, and what are the financial implications for the franchisee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.7 Condition, Maintenance and Refurbishment of Premises and Equipment. You must at all times keep the Premises clean and tidy. At your cost, you shall ensure that the Premises are maintained and equipped according to our specifications. You shall ensure that the Premises and all fixtures, fittings and equipment used in the Franchise comply at all times with our reasonable requirements and professional standards. You shall ensure that the Premises and the equipment are at all times operated and maintained in first class condition and repair including keeping them clean and safe in compliance with the industry standards and you must promptly correct any deviations from those standards. You shall replace flooring as specified by us if we deem it necessary. You shall repair and replace fittings, fixtures, equipment and lighting to comply with: (1) if the Premises are subject to a lease, any requirements under the lease; and (2) our standards of presentation required for all franchises in the network. You shall, in order to maintain the Franchise System and the professional image of the network, refurbish the Premises to our then-current specifications as reasonably requested by us and as stated more fully herein. If the provisions of a lease require you to refurbish the Premises more frequently, you must comply with the lease.
- 9.8 Upgrading Premises, Furniture, Fixture, Equipment ("FFE") and/or Other Required Items. Where reasonably necessary to protect our legitimate commercial interest, we may change any brand standard so as to require an upgrade of the Premises, FFE and/or any other Required Item used to initially build out and equip the Franchised Business. When this occurs, we require you to perform these upgrades at your cost within 180 calendar days of when we notify you of such upgrades via the Manuals or otherwise in writing to similarly-situated System franchisees.
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are responsible for maintaining and refurbishing their premises. Fitstop requires franchisees to keep their premises clean and maintained to their specifications, and in compliance with industry standards. Franchisees must also replace flooring as specified by Fitstop if deemed necessary. They are also responsible for repairing and replacing fixtures, fittings, equipment, and lighting to comply with lease requirements and Fitstop's presentation standards.
To maintain the Fitstop franchise system's professional image, franchisees must refurbish their premises to Fitstop's current specifications as reasonably requested. If a lease requires more frequent refurbishments, the franchisee must comply with the lease terms. Fitstop may also require upgrades to the premises, furniture, fixtures, equipment, or other required items if reasonably necessary to protect their commercial interests.
When Fitstop requires these upgrades, franchisees are responsible for performing them at their own cost within 180 calendar days of receiving notification, which may be communicated through the manuals or in writing to similarly-situated franchisees. This means a prospective Fitstop franchisee needs to be prepared for potential expenses related to maintaining, repairing, and upgrading their premises to meet Fitstop's standards and protect the brand's image, as well as complying with any lease requirements.