factual

What items does Fitstop require franchisees to acquire, license, or lease to establish and operate the Franchised Business?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

nd expense except as this Agreement otherwise permits herein.

Section 12: Required Items, Approved Suppliers and Related Obligations

  • 12.1 Required Items. Unless we agree otherwise in a separately-signed writing, you must acquire and/or license and/or lease: (i) the furniture, fixtures, equipment, supplies, inventory, Required Software and services we designate in the Manuals or otherwise in writing to (a) build-out and otherwise establish the Franchised Business at the Premises, and (b) operate that Franchised Business on an ongoing basis (collectively, the "Required Items"), in accordance with our then-current System standards and specifications; and (ii) such Required Items from the Approved Supplier, if any, we designate in our Manuals or otherwise in writing.
  • 12.2 Ongoing Obligations. To ensure you may service members, you must purchase and maintain in accordance with the specifications set forth in the Manual(s)s such additional supplies and equipment necessary. We may make changes in these standards and specifications. The changes may require you to purchase equipment, supplies, furnishings or other products. You must promptly use the modified standards and specifications at your own expense and as specified in this Agreement within 180 days of the date we provide notice of a formal roll-out with respect to all similarly-situated System franchisees.
  • 12.3 Right to Designate and Update List of Approved Supplier(s). We may, but are under no obligation, appoint oursevles and/or our affiliates or any other third party as an Apporved Supplier for one (1) or more Required Items associated with the Franchised Business upon prior written notice via the Manuals or otherwise.

12.4 Approved Services and Approved Products

12.4.1 Approved Products. The Manual(s) will set forth a list of the Approved Products we authorize for offer and retail sale at the Franchised Business.You must and may only use or sell the specific Approved Products at all times at and from the Premises, and must not discontinue or fail to use or offer any Approved Product unless (a) we agree otherwise in writing, or (b) you provide us with prior written notice that such Approved Product is not authorized for sale under applicable law(s) where the Franchised Business is located.

  • 12.4.2 Changes in Approved Products. We, where reasonably necessary to protect or promote our legitimate commercial interest, may at any time during the Term: (1) designate a product which is not an Approved Product as an Approved Product; (2) designate a product which is an Approved Product as no longer having that status; and (3) change a standard with respect to an Approved Product, and you must implement the change within 30 calendar days of your receipt of written notice of the change from us.
  • 12.4.3 Quality Control and Purchase of Supplies. You must use all services, systems, procedures and methods as reasonably instructed by us in writing to ensure adequate quality control of the Approved Products in compliance with the Franchise System.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must acquire, license, or lease specific items to establish and operate their franchised business. These include furniture, fixtures, equipment, supplies, inventory, Required Software, and services designated in the manuals or in writing by Fitstop. These items are needed both for the initial build-out of the Franchised Business at the Premises and for its ongoing operation, adhering to Fitstop's System standards and specifications. Franchisees must obtain these Required Items from Approved Suppliers, if any, designated by Fitstop in their manuals or in writing.

Fitstop may modify the standards and specifications for additional supplies and equipment, potentially requiring franchisees to purchase new items. Franchisees are expected to adopt these changes within 180 days of receiving notice from Fitstop. Fitstop retains the right to appoint themselves, their affiliates, or any third party as an Approved Supplier for Required Items, providing prior written notice in the manuals or otherwise.

Furthermore, Fitstop requires franchisees to install and use specific telephone and communication systems, including point-of-sale hardware and software, as specified by Fitstop. Franchisees are also responsible for acquiring and maintaining software licenses for all Required Software, whether or not it is covered by the Technology Fee. They must also install and use computer hardware and software that meets Fitstop's functionality and specification requirements. Fitstop may require franchisees to purchase computer hardware or license software directly from them or from certain designated suppliers.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.