What is a Fitstop franchisee representing when they sign the agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Section 21: Franchisee Representations and Acknowledgements
You, on behalf of yourself and your Franchise Owners, hereby represent, warrant and convey as follows to Franchisor:
- 21.1 You have all the requisite power and authority to operate the Franchised Business, and are duly licensed and qualified to transact business as a foreign entity in all jurisdictions in which the nature of the business it conducts makes such qualification as a foreign entity necessary.
- 21.2 You shall diligently and fully exploit the rights granted in this Franchise by personally devoting full time and best efforts and, in the case that more than one individual has executed this Franchise as the franchisee, then you shall personally devote full time and best efforts to the operation of the Franchise.You shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
- 21.3 You acknowledge that neither we nor anyone purporting to act for us has made any promises or representations concerning the sales volumes which your Franchise will produce, the profits you will make, your likelihood of success, or any other matter in connection with the proposed Franchise other than those which the Parties set forth in this Agreement and any signed amendments or exhibits or schedules hereto. If we or any of our agents have made such promises, you must ensure that they are set forth in writing in this Agreement or in an amendment, schedule, or exhibit to this Agreement and that we and you sign any such amendment or exhibit. We, in granting this Franchise, are relying on you to see that the Parties reduce to writing all such matters and attach the documentation that describes those representations to this Agreement and to which you considered material to your solicitation. If you do not reduce such representations to writing and attach those documents to this Agreement, you agree that you will not be able to rely in any way on such promises or representations and we will not be bound by them. YOU MUST ENSURE THAT ALL PROMISES AND REPRESENTATIONS FOR PRESENT AND FUTURE RESULTS AND RIGHTS, WHETHER ABSOLUTE OR CONTINGENT, ARE CONTAINED IN THE FRANCHISE AGREEMENT OR THEY MAY BE FOREVER LOST.
- ©2024 Fitstop USA, Inc. 21.4 This Agreement awards the right to open a single Franchised Business within the Designated Territory detailed in Schedule 2 to this Agreement and, except for the territorial rights descirbed
in Section 2.2 hereof, nothing in this Agreement grants any kind of "exclusive," "protected," or other territorial rights in any contiguous or other geographical area.
21.5 You acknowledge and agrees that your name, address, and telephone number will be disclosed, as required by law, in our then-current form of Franchise Disclosure Document (or "FDD") during the term of this Agreement and for one (1) or more years following this Agreement's termination, non-renewal, or transfer.
21.6
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, when a franchisee signs the agreement, they are making several representations and warranties to the franchisor. These representations cover various aspects of the franchisee's authority, commitment, and understanding of the franchise relationship.
Specifically, the franchisee represents that they possess the necessary power and authority to operate the Fitstop franchised business. This includes being duly licensed and qualified to conduct business in all relevant jurisdictions. Furthermore, the franchisee commits to diligently and fully exploit the rights granted in the franchise agreement by personally devoting full-time efforts to the operation. They also agree to avoid any conflicting enterprises or activities that could negatively impact the Fitstop business.
Moreover, the franchisee acknowledges that Fitstop has not made any promises or representations regarding potential sales volumes, profits, or likelihood of success, except as explicitly stated in the franchise agreement and its amendments. It is the franchisee's responsibility to ensure that any promises or representations made are documented in writing and attached to the agreement. By signing, the franchisee also agrees that their name, address, and telephone number can be disclosed in Fitstop's Franchise Disclosure Document during the term of the agreement and for a period after termination or transfer.