Are Fitstop franchisees required to use approved suppliers for the build-out?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally required to use approved suppliers for the build-out of their franchise location. Specifically, franchisees must utilize all Approved Suppliers that Fitstop designates for any Required Item (product or service) in connection with the buildout of the Franchised Business at the Premises, as designated in the Manuals or otherwise in writing. This requirement applies only to the initial build-out of the premises and not to the purchase of an existing franchise or to refurbishment or upgrades of the premises.

Fitstop retains the right to organize the build-out of the premises, but regardless of who undertakes the buildout, Fitstop has the right to review, approve, and confirm the design and build-out. The franchisee is responsible for ensuring the premises complies with all System standards and specifications, including the design and layout, and the package of furniture, fixtures, equipment, and other Required Items designated in the Manuals. Franchisees must also provide updates and reports throughout the buildout process.

If a franchisee wishes to purchase supplies from an alternative supplier, they must provide a sample of each item to Fitstop for approval to ensure it meets the appropriate quality standards for the franchise. Fitstop will make its best efforts to ensure that either they or a designated supplier will always have a supply of Approved Products for sale to the franchisee. Fitstop may also negotiate and/or receive rebates or other financial incentives from the manufacturers and suppliers of any Required Items and/or Approved Products that a System franchisee must acquire.

These stipulations ensure consistency and quality across all Fitstop franchise locations, but it also limits the franchisee's autonomy in choosing suppliers and potentially negotiating better deals. Franchisees should carefully review the list of Approved Suppliers and the specifications for Required Items to understand the potential costs and limitations involved in the build-out process.