Who is liable for paying all amounts owing in connection with the Lease and Premises for a Fitstop franchise?
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 responsible for all payments associated with the lease and premises. Specifically, the franchisee is liable for all amounts owed under the lease agreement. Failure to meet these financial obligations, such as rent payments, or any other monetary or non-monetary obligations, constitutes a material default of the franchise agreement.
This means that if a Fitstop franchisee fails to pay rent or otherwise violates the lease terms, Fitstop has grounds to terminate the franchise agreement. This provision underscores the importance of franchisees carefully managing their financial obligations related to the leased premises.
Furthermore, the FDD states that Fitstop may require the franchisee to assign the lease to Fitstop or its nominee at any time during the term of the agreement. If Fitstop makes such a request, the franchisee must comply within seven calendar days by signing all necessary documents to effect the assignment. This clause gives Fitstop significant control over the location of the franchise and adds another layer of responsibility for the franchisee to maintain a lease that meets Fitstop's standards and requirements.