Does the Fitstop Franchise Agreement grant franchisees the right to open and operate additional Franchised Businesses?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Your Franchise Agreement does not provide you with any right or option to open and operate any additional Franchised Businesses. As previously discussed, each Franchised Business you are awarded the right to open and operate must be governed by its own specific form of Franchise Agreement unless we agree to add that subsequent franchise to your existing agreement via a form of addendum. We have not established other franchised or company-owned outlets or another distribution channel for offering or selling products/services that are similar to the Approved Products and Approved Services under a different trademark. Neither we nor our affiliates have established, or presently intend to establish, other franchised or company-owned businesses that sell our Approved Products and Approved Services under a different trade name or trademark, but we reserve the right to do so in the future without your consent.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Franchise Agreement does not automatically grant franchisees the right to open and operate additional Fitstop Franchised Businesses. Each Fitstop location requires its own specific Franchise Agreement. Fitstop may agree to add a subsequent franchise to an existing agreement through an addendum, but this is not guaranteed.
This means that if a franchisee wants to expand and open another Fitstop location, they will generally need to enter into a new Franchise Agreement for each additional location. This new agreement would be subject to the terms and conditions in place at that time, which may differ from the terms of their original agreement.
Fitstop retains the right to establish other franchised or company-owned outlets, or alternative distribution channels, for similar products and services under a different trademark. However, as of the issue date of the FDD, Fitstop states that they have not established nor presently intend to establish other franchised or company-owned businesses that sell their approved products and approved services under a different trade name or trademark. Fitstop reserves the right to do so in the future without franchisee consent.