If Fitstop requests an assignment of the lease, how many days does the Fitstop franchisee have to comply?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.5 Where you have entered into a lease in respect of the Premises: (1) we may at any time during the Term notify you in writing that we require you to assign the lease of the Premises to us or our nominee; and (2) you must within seven (7) calendar days of such request assign the lease of the Premises to us or our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if Fitstop requires a franchisee to assign the lease of their premises to Fitstop or its nominee, the franchisee must comply within seven calendar days of receiving the written request. This includes signing all necessary documents and taking all required steps to complete the assignment.
This requirement is a significant obligation for the franchisee. It means that Fitstop has the right to take over the lease of the franchisee's location under certain circumstances. The FDD does not specify what those circumstances might be, giving Fitstop considerable latitude. The franchisee must be prepared to act quickly and decisively to fulfill this obligation within the very short timeframe.
Prospective Fitstop franchisees should carefully consider this provision and its potential implications. They should seek clarification from Fitstop regarding the specific situations in which this lease assignment clause might be invoked. Understanding Fitstop's typical practices and the reasons behind this requirement is crucial for making an informed investment decision.