Where can a Fitstop franchisee find the 'Prescribed Lease Terms'?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We may condition our approval of any site you propose on a number of conditions, including: (i) providing a written representation from the landlord of the Premises that you will have the right to operate the Franchised Business throughout the term of your Franchise Agreement; and (ii) you and landlord executing an appropriate form of addendum/rider to the Lease for the Premises in a form that affords Franchisor any lease terms that we prescribe in our Manuals (the "Prescribed Lease Terms").
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the 'Prescribed Lease Terms' that Fitstop requires for a franchisee's location lease can be found in the Fitstop manuals. Specifically, before a franchisee enters into a lease or purchase agreement for their proposed premises, Fitstop must have the opportunity to review it. Fitstop may then condition their approval of the site on the franchisee and landlord executing an addendum or rider to the lease. This addendum must be in a form that provides Fitstop with any lease terms that they prescribe in their manuals, which are referred to as the 'Prescribed Lease Terms'.
This means that a prospective Fitstop franchisee needs to be aware that the site selection and lease negotiation process involves Fitstop's approval and specific lease terms. The franchisee will need to work closely with Fitstop and the landlord to ensure the lease agreement meets Fitstop's requirements. This could potentially limit the franchisee's flexibility in negotiating lease terms, as they must adhere to Fitstop's prescribed terms.
It is important for a potential Fitstop franchisee to carefully review the Fitstop manuals and understand the 'Prescribed Lease Terms' before committing to a specific location. Understanding these terms upfront can help avoid potential conflicts or delays during the site selection and lease negotiation process. Franchisees should also seek legal counsel to review the lease agreement and ensure they fully understand their obligations and rights.