Who is liable for costs incurred when there is a renewal 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
9.10.3 where there is a renewal of the lease or an event that necessitates the renewal 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 the renewal of their lease. Specifically, the franchisee is responsible for costs including, but not limited to, negotiations and amendments to the lease or entry into a new or renewed lease and costs and fees Fitstop may incur in response.
This means that if a Fitstop franchisee decides to renew their lease, they will be responsible for covering all associated expenses. These expenses can include legal fees for reviewing the lease agreement, costs associated with negotiating the terms of the renewal, and any fees that Fitstop incurs while assisting or responding to the renewal process.
This allocation of costs is fairly standard in franchising, as the franchisee typically operates the business and benefits directly from the lease. It is important for prospective Fitstop franchisees to factor in these potential renewal costs when assessing the overall financial viability of their franchise, as these costs can be significant and impact their profitability.