Does the Fitstop Franchise Agreement grant franchisees the right to engage in activities that Fitstop reserves?

According to Fitstop's 2024 Franchise Disclosure Document, the Franchise Agreement does not grant franchisees the right to engage in activities that Fitstop reserves for itself. Fitstop retains all rights not expressly granted to the franchisee.

Specifically, Fitstop reserves the right to establish and operate other franchised businesses outside the franchisee's designated territory, market similar products and services under different trademarks, and use its trademarks to distribute approved products and services through various channels, including the internet and wholesale stores, both within and outside the designated territory. Fitstop also reserves the right to engage in transactions with other businesses, including competitors, and to operate System Businesses under the Proprietary Marks from Non-Traditional Venues such as academic institutions, military bases, "big box" gyms, hotels and/or airports.

The Franchise Agreement explicitly states that franchisees do not have the right to engage in these reserved activities or share in any proceeds Fitstop or its affiliates receive from these activities, unless otherwise agreed in writing. Fitstop is not obligated to compensate franchisees for soliciting or accepting orders inside their territory. This means a Fitstop franchisee's business activities are limited to those expressly granted in the Franchise Agreement, and they cannot expand into areas specifically reserved by Fitstop. This is a fairly standard practice in franchising, where the franchisor retains control over certain aspects of the brand and business model.