What is a 'Designated Territory' in the Fitstop franchise agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
As part of our current standard offering, we expect and intend to award you a geographical area wherein: (i) you must locate and secure an approved Premises; and (ii) we will afford you certain territorial rights as disclosed more fully in Item 12 of this Disclosure Document (your "Designated Territory"). Once you secure an approved Premises within that Designated Territory within the timeline set forth in your Franchise Agreement, we may mutually agree to amend the boundaries of the Designated Territory in a separately-signed addendum to provide territorial rights within the area that immediately surrounds the actual Premises where the Franchised Business is being operated.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 7–9)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the 'Designated Territory' refers to a geographical area that Fitstop expects and intends to award to a franchisee. Within this territory, the franchisee is required to locate and secure an approved premises for their Fitstop franchise. Item 12 of the FDD provides further details regarding the territorial rights associated with the Designated Territory.
Once a franchisee secures an approved location within their Designated Territory and within the timeline specified in the Franchise Agreement, Fitstop may mutually agree to amend the boundaries of the territory. This amendment, documented in a separate addendum to the Franchise Agreement, would provide the franchisee with territorial rights in the area immediately surrounding the actual premises where the Fitstop business operates.
This arrangement means that while Fitstop initially assigns a broader geographical area, the final territory can be adjusted to focus on the immediate vicinity of the approved premises. This ensures that the franchisee has protected rights around their specific location, while also allowing Fitstop some flexibility in managing territories and awarding future franchises. Prospective franchisees should carefully review Item 12 of the FDD and discuss the specifics of the Designated Territory and potential amendments with Fitstop to fully understand their territorial rights and obligations.