Who is liable for paying all amounts owing in connection with the Fitstop lease?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.4 You will be liable to pay all amounts owing in connection with the Lease and Premises governed thereby, and your failure to cure any defaults you have with respect to Tenant's (or its guarantors) monetary or non-monetary obligations under the Lease within the applicable cure periods set forth therein shall constitute a material default and, if the Lease is terminated or subject to termination, grounds for immediate termination of this Agreement by us upon written notice to you.
- 9.3.5 Where you have entered into a lease in respect of the Premises: (1) we may at any time during the Term notify you in writing that we require you to assign the lease of the Premises to us or our nominee; and (2) you must within seven (7) calendar days of such request assign the lease of the Premises to us or our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is solely responsible for all financial obligations related to the lease of the premises. Specifically, the franchisee is liable for paying all amounts owing in connection with the lease. This includes adhering to all terms, conditions, and covenants outlined in the lease agreement.
This means that the franchisee must ensure timely payments of rent and other charges associated with the property. Furthermore, the franchisee is responsible for curing any defaults, whether monetary or non-monetary, related to their obligations as a tenant. Failure to meet these obligations within the specified cure periods constitutes a material default under the franchise agreement, potentially leading to its termination.
Fitstop also retains the right to request an assignment of the lease to themselves or their nominee at any point during the term of the agreement. Should Fitstop exercise this right, the franchisee is obligated to comply within seven calendar days, signing all necessary documents to facilitate the transfer. This provision underscores the importance of carefully reviewing and understanding the lease terms and the potential implications for the franchisee's business operations.