What is the definition of 'material changes' in the terms and conditions of the proposed Fitstop transfer?

The 2024 Fitstop Franchise Disclosure Document (FDD) does not explicitly define "material changes" in the terms and conditions of a proposed transfer. However, it does state that if there are any material changes to the transfer terms after Fitstop has declined to exercise its Right of First Refusal, the franchisee must notify Fitstop in writing. Fitstop then has an additional 10 calendar days to decide whether to exercise its Right of First Refusal.

This clause protects Fitstop by allowing them to reassess a transfer if the terms change significantly after their initial review. For a potential Fitstop franchisee, this means that any changes to the transfer agreement must be promptly communicated to Fitstop, or the transfer could be jeopardized.

Since the FDD does not define what constitutes a "material change," it is important for a prospective franchisee to seek clarification from Fitstop on what specific changes they would consider material. Examples of potentially material changes could include alterations to the purchase price, payment terms, or any significant modifications to the assets being transferred. Understanding Fitstop's interpretation of "material changes" is crucial for ensuring a smooth and compliant transfer process.