What is the geographic radius around the premises where a Fitstop franchisee cannot engage in a similar business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.2 Territorial Rights within Designated Territory; Related Rights and Limitations. During the term of this Agreement, we will not open or operate, or license any third party the right to open or operate, another System Business under the Proprietary Marks from a physical location within the Designated Territory.
The territorial rights in this Section 2.2 shall be subject to our reserved rights detailed below in this Section.
You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, a franchisee's territorial rights are defined within a "Designated Territory." Fitstop will not open or license another System Business under its Proprietary Marks from a physical location within this Designated Territory during the agreement's term. The specific geographical area that constitutes a franchisee's "Designated Territory" is outlined in Schedule 2 of the Franchise Agreement.
A Fitstop franchisee is permitted to accept business and inquiries from prospective and existing members through their Franchised Business, but they must provide the Approved Services and Approved Products at and from the approved Premises, unless Fitstop agrees otherwise in writing. Additionally, franchisees are restricted from marketing the Franchised Business or soliciting potential customers or members outside of their Designated Territory.
Therefore, the FDD specifies that a franchisee's ability to operate and market a Fitstop business is limited to the Designated Territory. The exact size and boundaries of this area are determined by Fitstop and detailed in Schedule 2 of the Franchise Agreement, which is specific to each franchise location. A prospective franchisee should carefully review Schedule 2 to understand the extent of their exclusive operating area and any limitations on marketing activities outside of it.