Where can I find the specific details of the collateral assignment of lease required by Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
- 9.4 Prescribed Lease Terms. You must use your best efforts to negotiate with the landlord that owns or controls the Premises to integrate the Prescribed Lease Provisions, including a collateral assignment of lease in favor of us in the event this Agreement or the Lease is subject to termination, as specifically set forth in our then-current Manual(s). We may condition our approval or consent to any site you propose as a potential Premises for your Franchised Business on the Lease containing such provisions or substantially similar language affording us the rights detailed in our Prescribed Lease Provisions at the time of such proposal.
9.5 Build-Out and Establishment of Franchised Business at Approved Premises.
9.5.1 This section applies only in respect of the initial build-out of the Premises and does not apply to the purchase of an existing Franchise or to the refurbishment or upgrade of the Premises, in which case the Sections below (as relevant) will apply.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, details regarding the collateral assignment of lease can be found within the then-current Manual(s). As a prospective franchisee, you are responsible for negotiating with the landlord to integrate the prescribed lease provisions, including a collateral assignment of lease in favor of Fitstop, in the event that the Franchise Agreement or the Lease is subject to termination.
Fitstop may condition their approval of a potential site for your Franchised Business on the Lease containing provisions or substantially similar language that affords them the rights detailed in their Prescribed Lease Provisions at the time of such proposal. This means that securing a location and lease that meet Fitstop's requirements is a critical step in the franchise process.
Furthermore, Fitstop has the right to request you assign the lease of the Premises to them or their nominee at any time during the Term. If such a request is made, you must assign the lease within seven calendar days and sign all necessary documents to effect the assignment. This clause underscores Fitstop's control over the location of the franchise and provides them with a mechanism to secure the premises if necessary.