Is a Fitstop franchisee required to use a specific agent to locate a premises, and under what conditions?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.1.1 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.
- 9.1.2 If you have not located an appropriate premises by the time specified above, we may in our discretion (i) agree to terminate this Agreement or (ii) agree to extend the time you have to locate an appropriate premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally responsible for finding and securing a suitable location for their Fitstop franchise. The franchisee must exert their best effort to find a location within their designated territory that Fitstop approves, and secure a lease agreement within six months of the agreement's effective date.
As part of this process, the franchisee is expected to inspect potential locations, provide weekly updates to Fitstop about the locations they've inspected, and consider any locations that Fitstop suggests. However, Fitstop may require a franchisee to engage an agent that Fitstop approves to assist in locating a premises within the Designated Territory, if Fitstop deems it necessary.
If a franchisee fails to secure an appropriate location within the specified timeframe, Fitstop has the discretion to either terminate the agreement or extend the period allowed for finding a location. The franchisee is ultimately responsible for ensuring the lease contains specific provisions Fitstop designates and that Fitstop reviews and approves any changes to these provisions.