Who is liable for costs incurred if there is an assignment of 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;
- ©2024 Fitstop USA, Inc. 9.10.2 where there is an assignment of the lease or event that necessitates an assignment lease; or
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 the assignment of the lease.
Specifically, the franchisee is responsible for costs incurred when there is an assignment of the lease or an event that necessitates an assignment lease. These costs can include negotiations, amendments to the lease, entering into a new or renewed lease, and any fees Fitstop may incur in response to the assignment.
This means that if a Fitstop franchisee decides to assign their lease to another party or if an event occurs that requires the lease to be assigned, the franchisee will be responsible for covering all related expenses. This could potentially include legal fees, administrative costs, and any other expenses that arise during the assignment process. Franchisees should carefully consider these potential costs before agreeing to any lease assignments.