Who is liable for costs incurred when 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, this includes costs incurred where there is an assignment of the lease or event that necessitates an assignment lease.
This means that if a Fitstop franchisee needs to assign their lease for any reason, they will be responsible for covering all related expenses. These costs can include legal fees, administrative charges, and any other fees associated with the assignment process. This allocation of responsibility is fairly standard in franchising, as the franchisee typically controls the lease and its terms.
Prospective Fitstop franchisees should carefully consider this responsibility and factor in potential costs associated with lease assignments when evaluating the financial feasibility of the franchise. It would be prudent to discuss potential scenarios that might lead to a lease assignment with Fitstop during the due diligence process to better understand the potential financial implications.