When does Fitstop designate the approved premises and any territory adjustments?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchise Agreement with us.
Once we agree upon and you secure your Premises, we will designate the same and, if applicable, any adjustment to the Designated Territory, in an amendment to the Franchise Agreement that you will be required to execute at or around the time you execute a lease for said Premises. You may not relocate the Premises of your Franchised Business without our written consent, which we will not unreasonably withhold provided: (i) the new location is located within your Designated Territory and meets our thencurrent criteria for a System-associated Premises; and (ii) you pay our then-current relocation fee (if any). When considering a request for relocation, we may take into account the desirability of the proposed new location, its distance from other and future-planned franchised locations, the traffic patterns, security, cost, and the demographics of the area, proximity of competition, parking, as well as any other related factors we deem appropriate. These are the same kinds of factors we consider when evaluating your initial Premises.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the approved premises and any adjustments to the designated territory are specified in an amendment to the Franchise Agreement. This amendment is executed at or around the time the franchisee executes a lease for the premises.
This means that a prospective Fitstop franchisee will not have the final details of their territory confirmed until they are about to sign a lease for their chosen location. This timing is crucial because the territory defines the area where Fitstop will not open another franchise, directly impacting the franchisee's potential customer base and revenue. Securing a suitable premises is a prerequisite for finalizing the territory, adding a layer of complexity to the site selection process.
Fitstop may determine to designate a territory where the franchisee must locate a premises and adjust the boundaries of the designated territory to a comparable geographical region that immediately surrounds the premises. This will be provided in writing as part of Fitstop's response to the site proposal so the franchisee can evaluate before securing the proposed site, if and as Fitstop determines appropriate. Franchisees should carefully consider the proposed territory adjustment and its potential impact on their business before committing to the lease. Franchisees should also be aware that Fitstop reserves the right to locate System Businesses within Non-Traditional Venues located with the Designated Territory, and the territory is not exclusive.