If there is a change in the character of the location of the Fitstop premises detrimental to the franchise, can the franchisee relocate?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee may be able to relocate their franchise if there is a detrimental change in the character of the location. Specifically, if Fitstop reasonably believes that a change in the location negatively impacts the franchise's potential, warranting relocation, the franchisee can nominate a new premises. This new location is subject to Fitstop's prior written approval, or Fitstop may attempt to find a suitable alternative.
The Fitstop franchisee must propose a suitable new premises for approval within 70 calendar days from the date they vacate the current premises. The involved parties will then negotiate in good faith to agree on a timeline for entering into a lease for the new premises and relocating the franchise, including the build-out of the new location, in accordance with the Franchise Agreement.
The franchisee is responsible for all costs associated with relocation. It is in the best interest of both parties to ensure the Fitstop franchise reopens for trade at the new location as quickly as possible. Subject to relevant laws, the new premises must be fitted out at the franchisee's expense to conform to Fitstop's prevailing image and standards.