Where is the Designated Territory for a Fitstop franchise defined?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
and Designated Territory**
©2024 Fitstop USA, Inc. 2.1 Franchise Award; Approved Premises. We award you the right, and you undertake and accept the obligation, to independently own and operate the Franchised Business from the location you propose, we approve and you secure in accordance with the terms of this Agreement (the "Premises"). You
acknowledge that the rights granted in this Agreement only award you the right to: (i) operate the Franchised Business in accordance with our System standards and specifications from the specific Premises that we approve in writing; and (ii) market, advertise and promote the Franchised Business within the geographical area we designate in Schedule 2 to this Agreement (your "Designated Territory"). The Premises, once approved by us and secured by you, will be set forth in the Data Sheet attached as Schedule 1 to this Agreement (the "Data Sheet").
- 2.2 Territorial Rights within Designated Territory; Related Rights and Limitations. During the term of this Agreement, we will not open or operate, or license any third party the right to open or operate, another System Business under the Proprietary Marks from a physical location within the Designated Territory. The territorial rights in this Section 2.2 shall be subject to our reserved rights detailed below in this Section. You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
- 2.3 Reservation of Rights.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Designated Territory for a franchisee is defined in Schedule 2 of the Franchise Agreement. Section 2.1 of the agreement outlines that Fitstop awards the franchisee the right to operate their franchised business from a specific location, known as the Premises, which Fitstop must approve.
The franchisee is granted the right to market, advertise, and promote the Fitstop business within a geographical area that is specifically designated in Schedule 2 of the Franchise Agreement. This area is referred to as the franchisee's "Designated Territory." The approved Premises will be detailed in the Data Sheet, which is attached as Schedule 1 to the Franchise Agreement.
Section 2.2 states that during the term of the Franchise Agreement, Fitstop will not open or operate, nor will they license any third party to open or operate, another System Business under the Proprietary Marks from a physical location within the franchisee's Designated Territory. However, these territorial rights are subject to Fitstop's reserved rights, as detailed in the agreement. The franchisee can accept business from prospective and existing members, but they must provide services and products only at the approved Premises, unless otherwise agreed in writing, and they cannot market outside their Designated Territory.