How must a Fitstop franchisee offer and sell the products that are required?

ON WHAT THE FRANCHISEE MAY SELL

You must offer and sell all the products which we require and only the products which we authorize for the System, in the manner we prescribe. You will not offer to sell or provide at or through the Franchised Business any merchandise, products or services that have not been approved in advance in writing or use the premises for any other purpose other than the operation of the Franchised Business. You may not use nor sell any products, materials, supplies, paper goods, uniforms, fixtures, furnishings, signs, or equipment which do not meet our standards and specifications as a substitute for any Required Item designated by us in the Manuals or otherwise in writing.

You must ensure that: (i) only Authorized Instructors provide the fitness training and certain other Approved Services to Members and other clientele of the Franchised Business; and (ii) such Authorized Instructors perform and provide the fitness training classes and other Approved Services in accordance with (a) our Instructor Training Program, (b) the instructor pre-qualifications and (b) other System standards and specifications, methodologies, curricula and/or ongoing training materials (to the extent reduced to writing) and/or other techniques, as we identify during training or on an ongoing basis in the Manual(s)

(electronically or otherwise). We have the right to require you to offer and sell additional goods or services as we may designate. There are no limits on our right to do so. You are not allowed to solicit customers outside of your Designated Territory without our prior written approval. You will always maintain sufficient levels of inventory to adequately satisfy consumer demand. You must stop using or offering disapproved products or services immediately upon notice that such services or products have been discontinued. You must and may only offer and sell all Approved Products we designate, which may include privately branded or otherwise proprietary retail apparel, merchandise and/or other retail products. We reserve the right to charge you a fine up to $500/day per occurrence if you sell or offer disapproved products or services. If the law prohibits the use or sale of any product or service, you must cease all offer, sale and/or provision of such products/services immediately upon your receipt of written notice of said prohibition.

Your grant of a Franchised Business does not include: (i) any right to offer any services via e-commerce except through a website designated by us; (ii) any right to establish an independent website or to establish a URL incorporating the Proprietary Marks or any variation thereof; or (iii) any right to distribute, market, or implement our services in any channel of distribution not specifically identified in the Franchise Agreement.

You will be obligated to offer and sell any new or replacement products and/or services we designate, and you must participate in all local, regional and promotional program initiatives and campaigns adopted by us in which we require you to participate. We have the right to designate which of our franchisees may, or will be required to, participate in new product or service tests, new or modified product or service offerings and other programs and initiatives that we may, from time to time, develop. If we designate you for participation in any such program, initiative or campaign, you must participate when and as required by us. There are no limits on rights to require you to offer and sell those new products or to participate in those prog

Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 41–42)