What must Fitstop franchisees acknowledge regarding promises or representations about sales volumes or profits?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acknowledge that Fitstop has not made any promises or representations regarding potential sales volumes, profits, or the likelihood of success, except as explicitly stated in the Franchise Agreement and its signed amendments, exhibits, or schedules.
This means that prospective Fitstop franchisees cannot rely on any verbal or implied promises about financial performance made by Fitstop or its agents unless those promises are documented in writing and included in the Franchise Agreement. It is the franchisee's responsibility to ensure that any such promises are written into the agreement.
Fitstop emphasizes that it relies on the franchisee to ensure all material representations are documented. If a franchisee fails to secure these representations in writing, they agree that they cannot later rely on those promises, and Fitstop will not be bound by them. This underscores the importance of thorough due diligence and legal review before signing the Franchise Agreement.
This requirement is a standard practice in franchising, intended to protect both the franchisor and franchisee by ensuring that all key terms and expectations are clearly defined in the written agreement. It prevents misunderstandings and potential disputes arising from undocumented claims or promises.