Does Fitstop grant the right to operate the Franchised Business from any location, or is it restricted to an approved Premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
and Designated Territory**
©2024 Fitstop USA, Inc. 2.1 Franchise Award; Approved Premises. We award you the right, and you undertake and accept the obligation, to independently own and operate the Franchised Business from the location you propose, we approve and you secure in accordance with the terms of this Agreement (the "Premises"). You
acknowledge that the rights granted in this Agreement only award you the right to: (i) operate the Franchised Business in accordance with our System standards and specifications from the specific Premises that we approve in writing; and (ii) market, advertise and promote the Franchised Business within the geographical area we designate in Schedule 2 to this Agreement (your "Designated Territory"). The Premises, once approved by us and secured by you, will be set forth in the Data Sheet attached 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are granted the right to operate their Franchised Business specifically from a location that Fitstop approves. The franchisee is obligated to secure this approved location, referred to as the "Premises," in accordance with the terms of the Franchise Agreement. The rights awarded to the franchisee are limited to operating the Franchised Business from the approved Premises, adhering to Fitstop's System standards and specifications. Additionally, franchisees are authorized to market, advertise, and promote the Franchised Business within a designated geographical area, known as the "Designated Territory."
Fitstop retains the right to approve the Premises, which will then be detailed in a Data Sheet attached to the Franchise Agreement. Franchisees are restricted from providing Approved Services and Approved Products outside of the approved Premises, unless Fitstop provides explicit written consent in a separate agreement. Furthermore, franchisees are prohibited from marketing the Franchised Business or soliciting potential customers outside of their Designated Territory.
During the term of the agreement, Fitstop will not operate or license others to operate a System Business under its Proprietary Marks from a physical location within the franchisee's Designated Territory. However, this territorial protection is subject to certain reserved rights retained by Fitstop. The franchisee must use the Premises exclusively for operating the Franchise and must not change the Premises without Fitstop's prior written consent. The franchisee is also responsible for managing the build-out of the Premises, ensuring compliance with Fitstop's specifications and all applicable regulations, and paying all associated costs.