What evidence confirms favorable prospects for obtaining the site that Fitstop requires?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We will make reasonable efforts to approve or reject any proposed location within 30 days of the date you provide us with all requested materials. If we determine that an on-site evaluation is necessary, then you must: (i) submit to us in the form we specify a description of the site prior to our representative conducting its on-site evaluation, including evidence that the site satisfies our site selection guidelines and any other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site; and (ii) reimburse us for the expenses incurred in connection with such an evaluation. If we do not provide our specific approval of a proposed location within this 30-day period, the proposed location will be deemed rejected.
You must secure a Premises within six (6) months of the date you enter into your Franchise Agreement with us. If you are unable to find a suitable site within this timeline, then we will have the right to terminate your Franchise Agreement upon written notice.
Regardless of the above, our approval of a site you proposed for a given Franchised Business only means that the site meets our minimum requirements for a typical Franchised Business. It does not, and may not be construed to, constitute any kind of guarantee, promise, representation or other affirmative statement or judgment that your Franchised Business will achieve any certain level of revenue when operating from said location.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a prospective franchisee needs to provide evidence that confirms their favorable prospects for obtaining a site. This evidence is required when submitting a description of the site to Fitstop for on-site evaluation. The FDD specifies that this evidence can be in the form of a letter of intent or other documentation.
Fitstop requires franchisees to secure a suitable premises within six months of signing the Franchise Agreement. Failure to do so grants Fitstop the right to terminate the agreement with written notice. However, Fitstop's approval of a site only indicates that it meets the minimum requirements and does not guarantee any specific level of revenue for the Franchised Business.
Fitstop also outlines several factors it may consider when deciding whether to approve a site, including demographic characteristics, traffic patterns, parking, visibility, competition, zoning restrictions, and the physical characteristics of the proposed site. Fitstop must also have the opportunity to review any lease or purchase agreement for the proposed Premises before the franchisee enters into such an agreement. Fitstop may also require a written representation from the landlord ensuring the franchisee's right to operate throughout the term of the Franchise Agreement and may require that the franchisee and landlord execute an addendum to the lease with terms prescribed by Fitstop.