Must Fitstop franchisees pay all amounts due in connection with the buildout?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are responsible for ensuring that all amounts due in connection with the buildout of their franchise location are paid. This includes any development activities associated with establishing the Franchised Business at the Premises. These payments may include amounts due to Fitstop's Approved Suppliers and/or directly to Fitstop itself.

Fitstop franchisees are responsible for various aspects of the buildout process. They must manage and supervise the buildout, ensuring it is completed by licensed tradesmen in a proper manner. Franchisees also need to secure appropriate insurance, correct any defects, and ensure compliance with Fitstop's standards and government regulations. They must also get consent from Fitstop regarding the build-out plans, including the design, contractors, budget, and timeline.

This requirement places a significant financial responsibility on the franchisee. Failure to pay all amounts due could lead to delays in the buildout process or potential legal issues. It is important for prospective franchisees to carefully budget for these costs and ensure they have sufficient capital to cover all expenses. Franchisees should also maintain detailed records of all payments made in connection with the buildout.

Fitstop also has the option to organize the build-out of the Premises, but irrespective of who undertakes the buildout, Fitstop is entitled to review, approve, and confirm the design and build-out of the Premises. In consideration for those services, the franchisee must pay Fitstop for any reasonable project design and site approval fees upon demand from Fitstop.