Can a Fitstop franchisee accept an offer of personal employment to conduct services for a member in contravention of arrangements specified by Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.1 Franchise Award; Approved Premises. We award you the right, and you undertake and accept the obligation, to independently own and operate the Franchised Business from the location you propose, we approve and you secure in accordance with the terms of this Agreement (the "Premises"). You
acknowledge that the rights granted in this Agreement only award you the right to: (i) operate the Franchised Business in accordance with our System standards and specifications from the specific Premises that we approve in writing; and (ii) market, advertise and promote the Franchised Business within the geographical area we designate in Schedule 2 to this Agreement (your "Designated Territory"). The Premises, once approved by us and secured by you, will be set forth in the Data Sheet attached as Schedule 1 to this Agreement (the "Data Sheet").
You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
- 21.2 You shall diligently and fully exploit the rights granted in this Franchise by personally devoting full time and best efforts and, in the case that more than one individual has executed this Franchise as the franchisee, then you shall personally devote full time and best efforts to the operation of the Franchise.You shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, the franchisee must operate the Franchised Business in accordance with Fitstop's System standards and specifications from the approved Premises. The franchisee can only provide Approved Services and Approved Products at and from the Premises, unless Fitstop agrees otherwise in a separately-signed agreement. The franchisee also agrees to diligently and fully exploit the rights granted in this Franchise by personally devoting full time and best efforts. The franchisee shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
These provisions suggest that a Fitstop franchisee's ability to accept outside employment, especially if it involves providing services directly to members outside the approved Fitstop system and premises, is highly restricted. The franchisee's primary obligation is to the Fitstop business, and any conflicting activities could be seen as a breach of the agreement. The FDD emphasizes adherence to the Fitstop system and standards, limiting the franchisee's autonomy in offering services outside of this framework.
Therefore, a Fitstop franchisee likely cannot accept an offer of personal employment to conduct services for a member if it contravenes the arrangements specified by Fitstop. Doing so would potentially violate the agreement's terms regarding adherence to the system, dedication of full-time efforts, and restrictions on conflicting enterprises. A prospective franchisee should seek clarification from Fitstop regarding the specific limitations on outside employment and the types of activities that would be considered a conflict of interest.