Does Fitstop currently intend to establish other franchised or company-owned businesses that sell Approved Products and Approved Services under a different trade name or trademark?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We have not established other franchised or company-owned outlets or another distribution channel for offering or selling products/services that are similar to the Approved Products and Approved Services under a different trademark. Neither we nor our affiliates have established, or presently intend to establish, other franchised or company-owned businesses that sell our Approved Products and Approved Services under a different trade name or trademark, but we reserve the right to do so in the future without your consent.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop states that neither they nor their affiliates have established, or presently intend to establish, other franchised or company-owned businesses that sell their Approved Products and Approved Services under a different trade name or trademark. However, Fitstop reserves the right to do so in the future without the franchisee's consent. This means that while Fitstop does not currently have plans to introduce competing brands selling similar products or services, they retain the option to do so at any point in the future.
This reservation of rights is important for prospective franchisees to consider. While Fitstop assures that there are no current plans for competing brands, the possibility exists. This could potentially impact a franchisee's market share and profitability if Fitstop were to introduce a similar concept under a different brand name in the future. Franchisees should be aware that their agreement does not prevent Fitstop from pursuing such strategies.
Furthermore, Fitstop reserves the right to market, offer, and sell products and services similar to the Approved Products and Approved Services under a different trademark at any location, whether within or outside the Designated Territory. They can also use the Marks and System to distribute Approved Products and/or Approved Services through alternative channels, including the internet, direct mail, and wholesale stores. These rights are reserved to Fitstop and are not granted to the franchisee.
Prospective Fitstop franchisees should carefully consider these reserved rights and how they might affect their business. It would be prudent to discuss these points with Fitstop during the due diligence process to fully understand the potential implications and to assess the level of risk associated with this aspect of the franchise agreement.