Does Fitstop grant exclusivity of members to franchisees based on location?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
as Schedule 1 to this Agreement (the "Data Sheet").
- 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.
- 2.3 Reservation of Rights. Notwithstanding anything contained in this Agreement, we and/or our affiliates hereby reserve the exclusive right to: (i) establish and operate, and license any third party the right to establish and operate, other System Businesses using the Proprietary Marks at any location outside of the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are granted a designated territory, but this does not guarantee exclusivity of members. Fitstop will not open or license another System Business within the franchisee's designated territory during the agreement term.
However, the franchisee's rights are limited to operating from an approved physical location (the Premises) and marketing within their Designated Territory. Franchisees can accept business from members, but they must provide services at the approved Premises unless Fitstop agrees otherwise in writing. Additionally, franchisees cannot market or solicit customers outside their Designated Territory.
Fitstop retains the right to operate or license businesses outside the Designated Territory, and the agreement explicitly states that it does not grant exclusive, protected, or other territorial rights in any contiguous or other geographical area beyond the defined Designated Territory. This means that while Fitstop won't place another physical franchise location in your territory, members are not restricted to a specific location.