What must a Fitstop franchisee do to ensure that promises made by the franchisor are binding?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.3 You acknowledge that neither we nor anyone purporting to act for us has made any promises or representations concerning the sales volumes which your Franchise will produce, the profits you will make, your likelihood of success, or any other matter in connection with the proposed Franchise other than those which the Parties set forth in this Agreement and any signed amendments or exhibits or schedules hereto. If we or any of our agents have made such promises, you must ensure that they are set forth in writing in this Agreement or in an amendment, schedule, or exhibit to this Agreement and that we and you sign any such amendment or exhibit. We, in granting this Franchise, are relying on you to see that the Parties reduce to writing all such matters and attach the documentation that describes those representations to this Agreement and to which you considered material to your solicitation. If you do not reduce such representations to writing and attach those documents to this Agreement, you agree that you will not be able to rely in any way on such promises or representations and we will not be bound by them. YOU MUST ENSURE THAT ALL PROMISES AND REPRESENTATIONS FOR PRESENT AND FUTURE RESULTS AND RIGHTS, WHETHER ABSOLUTE OR CONTINGENT, ARE CONTAINED IN THE FRANCHISE AGREEMENT OR THEY MAY BE FOREVER LOST.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop or its agents make any promises or representations regarding sales volumes, profits, or the likelihood of success, a prospective franchisee must ensure these promises are documented in writing. Specifically, these promises must be included in the Franchise Agreement itself, or in a signed amendment, schedule, or exhibit attached to the agreement.
Fitstop emphasizes that it relies on the franchisee to ensure all material representations are written and attached to the agreement. If a franchisee fails to reduce such representations to writing and attach them to the agreement, they will not be able to rely on those promises, and Fitstop will not be bound by them.
This requirement underscores the importance of thorough due diligence and clear communication during the franchise purchasing process. A prospective Fitstop franchisee should ensure that any verbal promises or representations made by Fitstop are documented in writing and included in the Franchise Agreement to avoid potential disputes or misunderstandings in the future. The FDD explicitly states that unwritten promises may be "forever lost", highlighting the critical nature of this requirement.