Who is liable for costs incurred if the landlord requests an amendment to the Fitstop lease?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.10 Acknowledgements Regarding Subsequent Changes to Premises or Lease. You are liable for all costs incurred in association with the following events (including, but not limited to, negotiations and amendments to the lease or entry into a new or renewed lease and costs and fees we may incur in response):
- 9.10.1 where you, the landlord, or licensor of the lease requests an amendment to the terms of the lease;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is liable for all costs associated with lease amendments requested by the landlord. This includes, but is not limited to, the costs of negotiations, the amendment itself, and any fees Fitstop incurs in response to the request. This allocation of responsibility is detailed in Section 9.10 of the FDD.
This means that if a landlord seeks to change the terms of the lease agreement after it has been signed, the Fitstop franchisee will bear the financial burden of these changes. These costs can include legal fees for reviewing the amendments, potential increases in rent, or other modifications to the lease terms. The franchisee's responsibility extends to any costs Fitstop incurs while responding to the landlord's request, giving Fitstop the ability to pass on their expenses to the franchisee.
This aspect of the Fitstop franchise agreement places a significant financial risk on the franchisee. Lease amendments can be costly and unpredictable, potentially impacting the profitability of the franchise. Franchisees should carefully review the lease terms and consider negotiating clauses that limit their exposure to such costs. It is also important to maintain a good relationship with the landlord to minimize the likelihood of amendment requests.
Prospective Fitstop franchisees should seek legal counsel to fully understand the implications of this clause and to assess the potential financial risks associated with lease amendments. Understanding these obligations is crucial for budgeting and financial planning when operating a Fitstop franchise.