Is a Fitstop franchisee required to inspect prospective premises as part of securing an approved premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Unless we have already agreed upon a location for the Premises at the time we execute this Agreement, you must use your best efforts to locate and enter into a lease agreement for a Premises within the Designated Territory that we approve within six (6) months of the Effective Date. As part of that process, it is your responsibility to: (i) inspect prospective premises; (ii) report back to us on a weekly basis with details of the prospective premises inspected in the prior seven (7) calendar days; (iii) consider any potential premises we may suggest; and (iv) if we deem necessary, engage an agent we approve to assist you in locating an appropriate premises within the Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are obligated to inspect prospective premises as part of securing an approved location for their franchise. Specifically, franchisees must use their best efforts to locate and lease a premises within their designated territory, subject to Fitstop's approval, within six months of the agreement's effective date. Inspecting potential locations is a key part of this process.
In addition to inspecting prospective premises, Fitstop franchisees must report back to the company weekly with details of the locations they have inspected over the previous seven calendar days. Franchisees must also consider any potential premises that Fitstop suggests. If Fitstop deems it necessary, the franchisee may be required to engage an agent approved by Fitstop to assist in finding a suitable location within the designated territory.
If a franchisee fails to secure an appropriate premises within the initial six-month period, Fitstop has the discretion to either terminate the agreement or extend the time allowed for location scouting. This highlights the importance of diligently searching for and securing an approved premises within the specified timeframe to avoid potential termination of the franchise agreement. The franchisee is ultimately responsible for ensuring the location meets Fitstop's standards and is suitable for operating the franchised business, although Fitstop retains approval authority.