Who is liable for costs incurred when 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. Specifically, if the landlord requests an amendment to the terms of the lease, the franchisee must cover all associated costs. These costs include, but are not limited to, negotiations, the amendment itself, and any fees Fitstop incurs in response to the request.
This means that if a landlord seeks to change any part of the lease agreement after it's been signed, the franchisee will be responsible for expenses like legal fees for reviewing the amendment, costs for negotiating the changes, and any other fees that arise during the process. This allocation of responsibility is fairly standard in franchising, as the franchisee typically controls the lease and operates the location.
For a prospective Fitstop franchisee, this highlights the importance of carefully reviewing the lease before signing and understanding potential future costs. It would be prudent to negotiate favorable terms upfront and possibly include clauses that limit the franchisee's exposure to unexpected amendment costs. Additionally, maintaining a good relationship with the landlord could potentially mitigate the likelihood of frequent amendment requests.