Is a Fitstop franchisee allowed to accept any offer of personal employment or engagement to conduct any services directly or indirectly for a member in contravention of the arrangements specified by Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
inancial position and past business history, which could reasonably be considered relevant to our decision to grant the Franchise to you.
- 11.3.11 You must cooperate with other Franchise System franchisees and/or System Business owners as we direct in the Manuals or otherwise in writing, including without limitation, all policies and procedures set forth with respect to (a) Members and their corresponding membership contracts, and (b) any Member reciprocity, loyalty and/or reward programs we determine to establish, implement or otherwise administer.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
The 2024 Fitstop Franchise Disclosure Document addresses certain restrictions related to franchisee conduct, but it does not explicitly state whether a franchisee is prohibited from accepting personal employment or engagement to conduct services directly or indirectly for a member in contravention of Fitstop's arrangements. However, the FDD does state that franchisees cannot act in ways that are 'injurious or prejudicial to the goodwill' of the Fitstop system.
Item 11.3.11 states that Fitstop franchisees must cooperate with other Franchise System franchisees and/or System Business owners as directed in the manuals or in writing. This includes all policies and procedures set forth with respect to members and their corresponding membership contracts, and any member reciprocity, loyalty and/or reward programs Fitstop determines to establish, implement or otherwise administer. This suggests that franchisees must adhere to Fitstop's established protocols regarding member relationships and services.
Item 18.2.4 states that franchisees shall not divert or attempt to divert to any competitor, by direct or indirect inducement or otherwise, any member or potential member of the Franchise or any of our other franchises. Item 18.2.5 states that franchisees shall not do or perform, directly or indirectly, any other act injurious to or prejudicial to the goodwill associated with Fitstop, its trademarks, trade names, or the Franchise System. These clauses could be interpreted to restrict a franchisee's ability to independently engage with members in a way that undermines Fitstop's business model or reputation.
Because the FDD does not directly address the scenario of a franchisee accepting personal employment from a member, it is important for a prospective franchisee to seek clarification from Fitstop regarding this specific issue. Understanding the franchisor's stance on this matter is crucial for ensuring compliance and avoiding potential conflicts.