Does the Fitstop franchisee need to confirm they understand all obligations being undertaken in the Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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, a franchisee must acknowledge that Fitstop has not made any promises or representations concerning sales volumes, profits, likelihood of success, or any other matter related to the franchise, except as explicitly stated in the Franchise Agreement and its amendments. If Fitstop or its agents have made promises, the franchisee must ensure they are documented in writing within the agreement or its amendments, schedules, or exhibits, with both parties signing the documents. Fitstop relies on the franchisee to ensure all such matters are written and attached to the agreement if they are considered material to the franchisee's decision.
The franchisee acknowledges that if such representations are not put in writing and attached to the agreement, the franchisee cannot rely on them, and Fitstop will not be bound by them. The document emphasizes that all promises and representations for present and future results and rights, whether absolute or contingent, must be included in the Franchise Agreement to be valid. This requirement ensures that both parties have a clear and comprehensive understanding of their obligations and expectations, reducing the potential for misunderstandings or disputes in the future.
This clause places a significant responsibility on the prospective Fitstop franchisee to verify and document all promises and representations made during the franchise sales process. It protects Fitstop from claims based on undocumented statements and ensures that the franchisee is fully aware of the terms and conditions they are agreeing to. A prospective franchisee should meticulously review the Franchise Agreement and ensure that all material representations are included in writing to avoid potential future disputes or disappointments.