Where is the Designated Territory for a Fitstop franchise detailed?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the specifics of a franchisee's designated territory are found in Schedule 2 of the Franchise Agreement. The agreement grants the franchisee the right to operate their Fitstop business from a specific, approved location and to market, advertise, and promote the business within a defined geographical area, which is the "Designated Territory".
Fitstop assures franchisees that, during the agreement's term, it will not operate or license others to operate another Fitstop business under its trademarks from a physical location within the franchisee's Designated Territory. However, these territorial rights are subject to certain rights reserved by Fitstop.
While franchisees can accept business from members, they must provide services and products at the approved premises unless otherwise agreed upon. Furthermore, franchisees are restricted from marketing or soliciting customers outside their Designated Territory, ensuring a focused and protected market area.