Where is the designated territory for a Fitstop franchise detailed in the agreement?
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. Notwithstanding anything contained in this Agreement, we and/or our affiliates hereby reserve the exclusive right to: (i) establish and operate, and license any third party the right to establish and operate, other System Businesses using the Proprietary Marks at any location outside of the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the specific geographical area that constitutes a franchisee's designated territory is detailed in Schedule 2 of the Franchise Agreement. Section 2.1 of the agreement states that Fitstop awards the franchisee the right to operate their franchised business and to market, advertise, and promote the franchised business within this designated territory. The exact location of the approved premises for the Fitstop franchise will be outlined in the Data Sheet, which is attached as Schedule 1 to the agreement.
Fitstop also clarifies in Section 2.2 that during the term of the agreement, it will not open or operate, nor will it 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, this territorial protection is subject to certain rights that Fitstop reserves for itself.
Furthermore, Section 2.3 outlines Fitstop's reserved rights, including the right to establish and operate other System Businesses outside the designated territory, market similar products and services under different trademarks within or outside the territory, and use the Proprietary Marks for alternative distribution channels. Additionally, Section 21.4 confirms that the Franchise Agreement awards the right to open a single Franchised Business within the Designated Territory detailed in Schedule 2 to the Agreement.