What are some examples of Non-Traditional Venues where Fitstop may operate a System Business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We also reserve the right to open and operate and/or license others the right to operate a System Business under the Proprietary Marks from a captive venue or other non-traditional location, including by way of example, academic institutions, military bases, "big box" gyms, hotels and/or airports (each, a "Non-Traditional Venue").
Your Franchise Agreement does not grant you any right to (a) engage in any of the activities outlined in the preceding paragraph, or (b) share in any of the proceeds received by us, our affiliates or any third party from these activities, unless we otherwise agree in writing. We have no obligation to provide you with any compensation for soliciting or accepting orders inside your territory.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop retains the right to operate System Businesses from non-traditional locations. These locations can include captive venues such as academic institutions, military bases, "big box" gyms, hotels, and airports. This reservation of rights means that Fitstop can establish a Fitstop location in these venues, potentially within a franchisee's designated territory.
This right is reserved by Fitstop, and the Franchise Agreement does not grant franchisees the right to engage in these activities or share in any proceeds received by Fitstop or third parties from these activities. Fitstop has no obligation to compensate franchisees for orders solicited or accepted inside their territory through these alternative venues.
For a prospective franchisee, this means that while you may be granted a designated territory, Fitstop can still operate or license others to operate a Fitstop business within that territory in non-traditional venues. This could lead to increased competition within your designated territory, as Fitstop could place a location in a venue like a "big box" gym within your territory. It is important to consider the potential impact of these non-traditional venues on your business when evaluating a Fitstop franchise.