Can a Fitstop franchisee relocate their premises without written consent from the franchisor?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee cannot relocate their business premises without the franchisor's written consent. Fitstop states that this consent will not be unreasonably withheld if the new location meets specific criteria. These criteria include the new location being within the franchisee's designated territory and meeting Fitstop's current standards for a System-associated Premises. Additionally, the franchisee must pay Fitstop's then-current relocation fee, if one exists.
When evaluating a relocation request, Fitstop considers factors similar to those used when assessing the initial premises. These factors include the desirability of the new location, its distance from existing and planned franchised locations, traffic patterns, security, cost, demographics of the area, proximity to competitors, and parking availability. This comprehensive evaluation ensures that the relocation will not negatively impact the Fitstop brand or other franchisees in the area.
This requirement for written consent is a standard practice in franchising, allowing Fitstop to maintain brand consistency and protect the interests of all franchisees. By retaining control over location decisions, Fitstop can ensure that each outlet operates in a suitable environment and does not encroach upon other franchisees' territories. Prospective franchisees should carefully consider these relocation terms and any associated fees before entering into a franchise agreement.