What happens if a Fitstop franchisee offers services in contravention of arrangements specified by Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
nd methods as reasonably instructed by us in writing to ensure adequate quality control of the Approved Products in compliance with the Franchise System.
- 12.4.4 Approved Services. You may and must only offer and provide the Approved Services as we specify in the Manual(s), and not offer or provide other services or product at the Premises or otherwise in connection with Franchised Business unless we agree otherwise in a separate writing. You shall ensure that the services are promoted and provided in accordance with the Franchise System, the Manual(s), and our written direction from time to time. You shall market, promote and provide the services in a proper and professional manner, in conformity with any applicable standards and statutory requirements, and other requirements made known to you from time to time by us in writing. You shall not accept any offer of personal employment or engagement to conduct any services (including any Approved Services) directly or indirectly for a member in contravention of the arrangements specified by us in writing from time to time. Where reasonably necessary to protect or promote the parties' legitimate commercial interest, we may by written notice to you or by amendment to Manual(s) add to the range of services or delete a service from the range of services, in which case you must immediately cease to offer or provide the deleted service.
- 12.4.5 Pricing Policies. You shall comply with any pricing policies and guidelines which we reasonably notify you of from time to time and we are lawfully able to impose including policies under which we specify a maximum price for the Approved Products or services. Where reasonably necessary to protect our legitimate commercial interest, we may change our recommended or maximum retail prices, charges, discounts relating to or affecting any of the Approved Products or services and issue new or changed or modified recommended or maximum price lists upon notice.
- 12.4.6 Rebates. You acknowledge that we may 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 and/or offer for sale at the Premises or otherwise in connection with the Franchised Business. You agree that we may retain for our own benefit all rebates or payments received from any Approved Suppliers and/or other providers/suppliers, whether or not such rebates or payments are made as a consequence of purchases by you.
- 12.4.7 Proposal to Use Alternate Sources of Supply. If you wish to purchase supplies from an alternative supplier, you must deliver to us a sample of each item of supplies proposed to be purchased from the alternative supplier. We may check those items to ensure that they are of an appropriate quality for the Franchise.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must not accept any offer of personal employment or engagement to conduct any services, including approved services, directly or indirectly for a member if it contravenes arrangements specified by Fitstop in writing.
Fitstop retains the right to modify the range of services offered. Where reasonably necessary to protect the parties’ legitimate commercial interests, Fitstop may add to or delete from the range of services by written notice or amendment to the manuals. If a service is deleted, the franchisee must immediately stop offering or providing it.
Furthermore, Fitstop can seek injunctive relief in court to enforce the agreement, without needing to post a bond. This includes actions to prohibit any act or omission by the franchisee or their representatives that violates applicable law, threatens the Fitstop system, or threatens other Fitstop franchisees. If an injunction is entered against the franchisee, their only remedy is to dissolve the injunction if they prevail in a proceeding.