What is the deadline for Fitstop to exercise its Right of First Refusal after receiving notice of material changes to the proposed transfer?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.5 If there are any material changes in the terms and conditions of the proposed transfer after we notify you of our election not to exercise our Right of First Refusal, or after the expiration of the time period within which we can elect to exercise our right, you shall notify us of the changes in writing and we shall then have an additional 10 calendar days within which to elect to exercise our Right of First Refusal.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if there are material changes to the terms of a proposed transfer after Fitstop has either declined to exercise its Right of First Refusal or the period to exercise that right has expired, the franchisee must notify Fitstop in writing. Following this notification, Fitstop has an additional 10 calendar days to decide whether to exercise its Right of First Refusal.
This clause is important for prospective Fitstop franchisees because it outlines the procedure and timeline if the terms of a transfer change. This ensures Fitstop has the opportunity to reassess the transfer under the new conditions. The franchisee must provide written notice of these changes to trigger the 10-day period.
It is important to note that the 10-day period only applies after Fitstop has already declined the transfer or the initial period to respond has passed. If the terms change before either of those events, the original Right of First Refusal terms would apply. This process helps protect Fitstop's interests by allowing it to reconsider a transfer if the terms become more favorable or otherwise align better with its strategic goals.