Does the Fitstop franchise agreement permit any exceptions to the franchisee's obligation to comply with changes to the Franchise System at their sole cost and expense?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.5 You agree that we may change the Franchise System including, without limitation, brand standards, the adoption and use of new or modified trademarks and service marks, Confidential Information, products, and services. You agree to be bound by these changes and promptly comply with all such additions, modifications, and changes at your sole cost and expense except as this Agreement otherwise permits herein.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, Fitstop franchisees generally must comply with changes to the Fitstop system at their own expense. However, the franchise agreement does include a provision that allows for exceptions to this general rule.
Specifically, the FDD states that franchisees agree to comply with changes to the Fitstop franchise system, including brand standards, trademarks, confidential information, products, and services. These changes must be implemented promptly at the franchisee's sole cost and expense, "except as this Agreement otherwise permits herein."
This "except as this Agreement otherwise permits herein" clause suggests that there may be specific situations outlined elsewhere in the agreement where Fitstop might bear some or all of the costs associated with system changes. A prospective franchisee should carefully review the entire franchise agreement to identify these potential exceptions and understand the circumstances under which Fitstop might share the financial burden of implementing system-wide changes.