What must a Fitstop franchisee do after recruiting a new Designated Manager?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Any and all Designated Manager(s) must sign our then-current prescribed form of Confidentiality and Non-Competition Agreement. If and when a Designated Manager leaves his/her/their employment at your Franchised Business, you must recruit a new Designated Manager within thirty (30) days and submit the replacement's qualifications to us for our review and approval (which may be conditioned on completion of certain "Management Criteria") before substituting a new Designated Manager at any of your locations (unless you resume taking over the day-to-day operations of the Franchised Business on a full-time basis).
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 40–41)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a Designated Manager leaves their employment, the franchisee has 30 days to recruit a new Designated Manager. The franchisee must then submit the replacement's qualifications to Fitstop for review and approval. Fitstop's approval may be conditional based on the completion of certain "Management Criteria". Until the new Designated Manager is approved, the franchisee must either take over the day-to-day operations on a full-time basis or ensure the replacement completes the required Management Criteria.
This requirement ensures that all Fitstop locations are managed by individuals who meet the franchisor's standards. This is a common practice in franchising, as franchisors want to maintain consistency and quality across all locations. By requiring franchisees to seek approval for new managers, Fitstop retains some control over the management of each franchise, even if the franchisee is not directly involved in the day-to-day operations.
For a prospective Fitstop franchisee, this means that finding and training a qualified Designated Manager is crucial, especially if they do not plan to be involved in the daily operations themselves. The franchisee should be prepared to act quickly to find a replacement if the Designated Manager leaves, and they should also be aware that Fitstop has the right to approve or disapprove the replacement based on their qualifications. This could potentially cause delays in the operation of the franchise if a suitable replacement cannot be found quickly.