If Fitstop requires an upgrade to the premises, FFE, or other required items, who bears the cost?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally responsible for the costs associated with upgrades to the premises, furniture, fixtures, and equipment (FFE). Fitstop may change brand standards to require upgrades to the premises, FFE, or any other required item used to build out and equip the franchised business.

If Fitstop deems upgrades reasonably necessary to protect its commercial interests, the franchisee must perform these upgrades at their own cost. The franchisee has 180 calendar days to complete the upgrades after receiving notification from Fitstop, either through the manuals or in writing, to similarly situated franchisees.

This requirement means that a Fitstop franchisee should be prepared to invest further in their business to keep it aligned with Fitstop's evolving brand standards. It is important to note that these upgrades are deemed necessary to protect Fitstop's commercial interests, implying that these changes are strategic and intended to maintain the brand's competitive edge. Franchisees should factor in potential upgrade costs when assessing the financial viability of the franchise and carefully review the brand standards and upgrade requirements outlined in the manuals and franchise agreement.