What is the deadline for the parties to complete the Fitstop transfer if Fitstop exercises its Right of First Refusal?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.4 If we elect to exercise, or to assign under payment guarantee, the Right of First Refusal, the Parties shall act expeditiously to complete the transfer, provided that the date for the completion of the transfer can be extended at our option for up to an additional 30 calendar days.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop elects to exercise its Right of First Refusal, all parties involved must act quickly to finalize the transfer. The completion date for the transfer can be extended at Fitstop's discretion for up to an additional 30 calendar days.
This means that if a franchisee attempts to sell their Fitstop franchise to a third party, Fitstop has the first option to purchase the franchise themselves. If Fitstop decides to exercise this right, the transfer process must be expedited.
The clause allowing Fitstop to extend the completion date by up to 30 days provides Fitstop with additional flexibility during the transfer process. This could be used to address unforeseen issues or to ensure a smooth transition of ownership. Franchisees should be aware of this potential extension, as it could impact their timeline for completing the sale of their franchise.