Can Fitstop designate a product which is an Approved Product as no longer having that status?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.4.2 Changes in Approved Products. We, where reasonably necessary to protect or promote our legitimate commercial interest, may at any time during the Term: (1) designate a product which is not an Approved Product as an Approved Product; (2) designate a product which is an Approved Product as no longer having that status; and (3) change a standard with respect to an Approved Product, and you must implement the change within 30 calendar days of your receipt of written notice of the change from us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can change the status of approved products. Fitstop, where reasonably necessary to protect or promote their legitimate commercial interest, may at any time during the term designate a product which is an Approved Product as no longer having that status.
This means that Fitstop franchisees may be required to stop selling a product that was previously approved. Franchisees must implement this change within 30 calendar days of receiving written notice from Fitstop. This could impact a franchisee's revenue if a popular product is removed from the approved list.
It is important for prospective franchisees to understand that Fitstop retains the right to make these changes to protect its commercial interests, and franchisees are obligated to comply with these changes in a timely manner. This clause gives Fitstop a degree of control over the products offered at the franchise location.