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What happens if a Fitstop franchisee uses a non-approved supplier for required items?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

nd expense except as this Agreement otherwise permits herein.

Section 12: Required Items, Approved Suppliers and Related Obligations

  • 12.1 Required Items. Unless we agree otherwise in a separately-signed writing, you must acquire and/or license and/or lease: (i) the furniture, fixtures, equipment, supplies, inventory, Required Software and services we designate in the Manuals or otherwise in writing to (a) build-out and otherwise establish the Franchised Business at the Premises, and (b) operate that Franchised Business on an ongoing basis (collectively, the "Required Items"), in accordance with our then-current System standards and specifications; and (ii) such Required Items from the Approved Supplier, if any, we designate in our Manuals or otherwise in writing.
  • 12.2 Ongoing Obligations. To ensure you may service members, you must purchase and maintain in accordance with the specifications set forth in the Manual(s)s such additional supplies and equipment necessary. We may make changes in these standards and specifications. The changes may require you to purchase equipment, supplies, furnishings or other products.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acquire specific items, referred to as "Required Items," from approved suppliers as designated by Fitstop. If a franchisee wishes to purchase supplies from an alternative supplier, they must provide Fitstop with a sample of each item. Fitstop will then assess these items to ensure they meet the quality standards required for the franchise.

Fitstop retains the right to notify the franchisee if any of the items from the alternative supplier are deemed unsuitable. In such cases, the franchisee is prohibited from using those supplies in the Fitstop franchise. Fitstop also states that they will use their best efforts to ensure that either they or a designated supplier will at all times have a supply of Approved Products for sale to the franchisee.

This policy ensures that Fitstop maintains consistent quality and standards across all its franchise locations. While franchisees can propose alternative suppliers, Fitstop has the final say on whether those suppliers meet the brand's requirements. This protects the brand's reputation and ensures that all locations offer a similar experience to customers. It is important for prospective franchisees to understand that they may not have complete autonomy in choosing suppliers and must adhere to Fitstop's approved vendor list unless they obtain explicit approval for alternatives.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.