What is Fitstop's expectation regarding the timeframe for reopening the Franchise at the new premises after relocation?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.9.2 If relocation is approved by us, you must propose a suitable new premises for approval by us by no later than 70 calendar days from the date on which you vacate the Premises.
- 9.9.3 The parties will negotiate and agree in good faith the time in relation to your entering into the lease in respect of the new Premises and relocating the Franchise (including the build-out of the new Premises in accordance with Franchise Agreement).
- 9.9.4 You acknowledge and agree that: (1) compliance with this section is at your sole cost and expense; (2) it is in the best interests of both parties that the Franchise be open for trade from the new Premises as soon as possible; and (3) subject to relevant laws, the new Premises are to be fitted out at your cost to conform with the then prevailing image and otherwise in accordance with this Section.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop approves a relocation, the franchisee must propose a suitable new premises for approval within 70 calendar days from vacating the original premises. Fitstop and the franchisee will then negotiate in good faith to agree on the timeframe for entering into a lease for the new premises and relocating the franchise, including the build-out.
Fitstop emphasizes that it is in the best interest of both parties to reopen the franchise at the new location as quickly as possible. The franchisee is responsible for all costs associated with relocation and ensuring the new premises conform to Fitstop's current image and standards. This includes fitting out the new premises at the franchisee's expense, subject to relevant laws.
This arrangement highlights the importance of efficient relocation to minimize business disruption. While the exact timeframe for reopening is subject to negotiation, Fitstop's stated interest in a swift transition suggests they will work with the franchisee to expedite the process. However, the franchisee bears the financial burden of ensuring a quick and compliant relocation.