factual

What must a Fitstop franchisee do regarding the terms of the lease agreement for the Premises?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

bstantially change the size or layout of the Premises without our prior written approval.

9.3 Lease of Premises.

  • 9.3.1 You are solely responsible for locating, proposing and securing a lease for the Premises we approve in writing prior to you securing the right to occupy and use such Premises for purposes of developing and operating the Franchised Business.
  • 9.3.2 You must ensure that the lease for the Premises (the "Lease") contains and integrates the provisions and covenants set forth in this Section or that we designate in the Manuals at any time prior to you securing any Premises (the "Prescribed Lease Provisions"), with said Lease subject to our review and approval with respect to any markup or negotiated changes to said provisions as part of our overall right to approve the Premises itself.
  • 9.3.3 You must perform and observe at all times the terms (including conditions and covenants) of any lease or other agreement affording you access to and use of the Premises.
  • 9.3.4 You will be liable to pay all amounts owing in connection with the Lease and Premises governed thereby, and your failure to cure any defaults you have with respect to Tenant's (or its guarantors) monetary or non-monetary obligations under the Lease within the applicable cure periods set forth therein shall constitute a material default and, if the Lease is terminated or subject to termination, grounds for immediate termination of this Agreement by us upon written notice to you.
  • 9.3.5 Where you have entered into a lease in respect of the Premises: (1) we may at any time during the Term notify you in writing that we require you to assign the lease of the Premises to us or our nominee; and (2) you must within seven (7) calendar days of such request assign the lease of the Premises to us or our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
  • 9.4 Prescribed Lease Terms. You must use your best efforts to negotiate with the landlord that owns or controls the Premises to integrate the Prescribed Lease Provisions, including a collateral assignment of lease in favor of us in the event this Agreement or the Lease is subject to termination, as specifically set forth in our then-current Manual(s). We may condition our approval or consent to any site you propose as a potential Premises for your Franchised Business on the Lease containing such provisions or substantially similar language affording us the rights detailed in our Prescribed Lease Provisions at the time of such proposal.

9.5 Build-Out and Establishment of Franchised Business at Approved Premises.

9.5.1 This section applies only in respect of the initial build-out of the Premises and does not apply to the purchase of an existing Franchise or to the refurbishment or upgrade of the Premises, in which case the Sections below (as relevant) will apply.

  • 9.5.2 You must undertake the build-out of the Premises. We may at our reasonable discretion organize the build-out of the Premises. Irrespective of whether we or you undertake the buildout, we shall be entitled to review, approve and confirm the design and build-out of the Premises. In consideration for those services, you must pay us for any reasonable project design and site approval fees upon demand from us.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for several aspects of the lease agreement for their Fitstop location. The franchisee is solely responsible for locating, proposing, and securing a lease for the premises, which Fitstop must approve in writing before the franchisee can occupy and use the space. The franchisee must ensure the lease contains specific provisions and covenants, known as the "Prescribed Lease Provisions," as outlined in the FDD or Fitstop's manuals. These provisions are subject to Fitstop's review and approval, especially regarding any changes negotiated by the franchisee.

The Fitstop franchisee must adhere to all terms, conditions, and covenants of the lease agreement. This includes paying all amounts owed under the lease. Failure to address any monetary or non-monetary defaults within the lease's specified cure periods constitutes a material default and could lead to termination of the Franchise Agreement. Fitstop also retains the right to request the franchisee to assign the lease to Fitstop or its nominee at any point during the term of the agreement, and the franchisee must comply within seven calendar days of such a request.

Fitstop may condition its approval of a potential site on the inclusion of the Prescribed Lease Provisions or similar language that grants Fitstop specific rights. The franchisee is also responsible for all costs associated with any amendments to the lease requested by the franchisee, landlord, or licensor, as well as costs related to lease assignments or renewals. Additionally, the franchisee must use the premises exclusively for operating the Fitstop franchise and must maintain the premises according to Fitstop's standards and specifications, including any refurbishments required by Fitstop or the lease agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.