What is a Fitstop franchisee required to certify and warrant regarding owners, shareholders, members, managers, partners, officers, and directors?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.1 You identify in Schedule 1 to this Agreement the identity of and other necessary information related to your Principals. You certify and warrant that all of the Franchise's owners, shareholders, members, managers, partners, officers, and directors listed in Schedule 1, will execute the Guaranty attached as Schedule 3 to this Agreement, and will execute such other documents as necessary.
- 10.2 If you are a business entity, then you must: (i) identify each individual or other entity that owns or holds any ownership interest in the Franchisee in Schedule 1 (each, a "Franchise Owner" or "Principal"); and (ii) ensure each Franchise Owner executes the form of Personal Guarantee attached to this Agreement as Schedule 3 (the "Personal Guaranty" or "Guaranty").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, a Fitstop franchisee must identify their Principals in Schedule 1 of the Franchise Agreement. Principals include all of the Franchise's owners, shareholders, members, managers, partners, officers, and directors.
The franchisee must certify and warrant that all individuals listed as owners, shareholders, members, managers, partners, officers, and directors in Schedule 1 will execute the Guaranty attached as Schedule 3 to the Franchise Agreement. They must also execute any other documents deemed necessary by Fitstop.
If the franchisee is a business entity, they must identify each individual or entity that holds any ownership interest in Schedule 1. Each Franchise Owner must execute the Personal Guaranty attached to the Agreement as Schedule 3. This ensures that Fitstop has a personal guarantee from the key individuals involved in the franchise operation.