What happens if the Lease for a Fitstop franchise is terminated?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
dar days of when we notify you of such upgrades via the Manuals or otherwise in writing to similarly-situated System franchisees.
9.9 Relocation.
- 9.9.1 If the lease expires during the Term or is terminated through no fault of you, the Premises are destroyed or are unable to be used for at least 70 consecutive calendar days, or if in our reasonable opinion, there is a change in the character of the location of the Premises which is detrimental to the potential of the Franchise to warrant relocation, then you may nominate new premises, which will be subject to the prior written approval of us or we may endeavor to locate a suitable alternative new Premises.
- 9.9.2 If relocation is approved by us, you must propose a suitable new premises for approval by us by no later than 70 calendar days from the date on which you vacate the Premises.
- 9.9.3 The parties will negotiate and agree in good faith the time in relation to your entering into the lease in respect of the new Premises and relocating the Franchise (including the build-out of the new Premises in accordance with Franchise Agreement).
- 9.9.4 You acknowledge and agree that: (1) compliance with this section is at your sole cost and expense; (2) it is in the best interests of both parties that the Franchise be open for trade from the new Premises as soon as possible; and (3) subject to relevant laws, the new Premises are to be fitted out at your cost to conform with the then prevailing image and otherwise in accordance with this Section.
- 9.10 Acknowledgements Regarding Subsequent Changes to Premises or Lease. You are liable for all costs incurred in association with the following events (including, but not limited to, negotiations and amendments to the lease or entry into a new or renewed lease and costs and fees we may incur in response):
- 9.10.1 where you, the landlord, or licensor of the lease requests an amendment to the terms of the lease;
- ©2024 Fitstop USA, Inc. 9.10.2 where there is an assignment of the lease or event that necessitates an assignment lease; or
9.10.3 where there is a renewal of the lease or an event that necessitates the renewal of the lease.
Section 10: Ownership and Management of the Franchised Business
- 10.1 You identify in Schedule 1 to this Agreement the identity of and other necessary information related to your Principals. You certify and warrant that all of the Franchise's owners, shareholders, members, managers, partners, officers, and directors listed in Schedule 1, will execute the Guaranty attached as Schedule 3 to this Agreement, and will execute such other documents as necessary.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if the lease expires or is terminated through no fault of the franchisee, or if the premises are unusable for at least 70 consecutive calendar days, or if there's a detrimental change to the location, the franchisee can nominate new premises, subject to Fitstop's approval. Alternatively, Fitstop may try to find a suitable new location.
The franchisee must propose a new location within 70 calendar days from vacating the original premises, and both parties will negotiate in good faith the timeline for securing the new lease and relocating the Fitstop franchise, including build-out. The franchisee is responsible for all costs associated with relocation and must ensure the new premises conform to Fitstop's current image standards.
The Fitstop franchisee is liable for all costs related to lease amendments requested by the franchisee, landlord, or licensor, as well as costs associated with lease assignments or renewals. This includes Fitstop's costs and fees incurred in response to these events. Upon termination or nonrenewal of the Franchise Agreement, the franchisee is not entitled to any payment for goodwill or equity.