If a Designated Manager leaves a Fitstop franchise, how long does the franchisee have to recruit a replacement?

According to Fitstop's 2024 Franchise Disclosure Document, if a Designated Manager leaves a Fitstop franchise, the franchisee has 30 days to recruit a new Designated Manager. The franchisee must then submit the replacement's qualifications to Fitstop for review and approval. Fitstop's approval may be conditional, requiring the new manager to meet certain "Management Criteria." The franchisee cannot substitute a new Designated Manager at any of their locations until Fitstop grants approval, unless the franchisee resumes full-time, day-to-day operations of the Fitstop business themselves.

This requirement ensures that each Fitstop location is consistently managed by a trained and qualified individual, whether it's the franchisee or a Designated Manager. This is particularly important for franchisees who do not plan to be involved in the daily operations of their Fitstop business, as it mandates a process for maintaining qualified management. The Confidentiality and Non-Competition Agreement that Designated Managers must sign further protects Fitstop's interests.

For a prospective Fitstop franchisee, this means being prepared to act quickly to find a suitable replacement if their Designated Manager leaves. The 30-day window is relatively short, so having a recruitment plan in place is advisable. Additionally, franchisees should be aware of the potential for Fitstop to impose conditions on the approval of a new manager, which could delay the replacement process. Franchisees should also consider the implications of temporarily resuming day-to-day operations themselves if a replacement isn't found or approved in time.