Must a Fitstop franchisee operate their franchised business from an approved premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
roved Premises and Relocation
You must operate your Franchised Business from an approved Premises that you must secure within the Designated Territory granted to you at the time you execute your Franchise Agreement with us.
Once we agree upon and you secure your Premises, we will designate the same and, if applicable, any adjustment to the Designated Territory, in an amendment to the Franchise Agreement that you will be required to execute at or around the time you execute a lease for said Premises. You may not relocate the Premises of your Franchised Business without our written consent, which we will not unreasonably withhold provided: (i) the new location is located within your Designated Territory and meets our thencurrent criteria for a System-associated Premises; and (ii) you pay our then-current relocation fee (if any). When considering a request for relocation, we may take into account the desirability of the proposed new location, its distance from other and future-planned franchised locations, the traffic patterns, security, cost, and the demographics of the area, proximity of competition, parking, as well as any other related factors we deem appropriate. These are the same kinds of factors we consider when evaluating your initial Premises.
Rights Within and Outside Designated Territory
There are no territorial restrictions from accepting and providing the Approved Services to customers/patrons that reside/work or are otherwise based outside of your Designated Territory, provided you only perform such Approved Services to the customer base from the Premises of your Franchised Business. Other System Businesses and franchisees will have these same rights. You will not be required to pay us any additional consideration for accepting clientele from those that reside outside of your Designated Territory, provided all Approved Services and revenue is generated at and from the approved Premises.
You may not use alternative channels of distribution, such as the internet, catalog sales, telemarketing or other direct marketing, to make any sales outside of your Designated Territory (including the sale of any Approved Products). You are also prohibited from actively soliciting customers outside of your Designated Territory without our prior written consent. We are not required to pay you any compensation for soliciting or accepting orders inside your Designated Territory. Your Franchise Agreement does not provide you with any right of first refusal, option or any other rights to acquire additional franchises.
Reserved Rights
We reserve all rights not expressly granted to you.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must operate their franchised business from an approved premises. The franchisee is responsible for securing this premises within the designated territory granted to them when they sign the Franchise Agreement. Once Fitstop agrees on the premises and the franchisee secures it, the premises and any adjustments to the designated territory will be specified in an amendment to the Franchise Agreement, which the franchisee must execute around the time they sign the lease for the premises.
The FDD also states that a Fitstop franchisee cannot relocate their franchised business without Fitstop's written consent. This consent will not be unreasonably withheld if the new location is within the designated territory and meets Fitstop's current criteria for a System-associated Premises. The franchisee may also have to pay a relocation fee. Fitstop will consider factors such as the desirability of the new location, its distance from other franchised locations, traffic patterns, security, cost, demographics, competition, and parking when evaluating a relocation request. These are the same factors considered when evaluating the initial premises.
Fitstop franchisees are allowed to serve customers who reside or work outside of their designated territory, as long as these services are performed from the approved premises. However, franchisees are prohibited from using alternative channels of distribution, such as the internet or telemarketing, to make sales outside of their designated territory. They are also prohibited from actively soliciting customers outside of their designated territory without prior written consent from Fitstop.