What are the limitations on providing services to members outside of my designated Fitstop territory?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
o our reserved rights detailed below in this Section. You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee's ability to provide services to members outside of their designated territory is restricted. Fitstop franchisees may only provide approved services and products at and from their approved premises, unless Fitstop agrees otherwise in a separate, signed agreement. This means that franchisees are generally prohibited from offering their services or selling products outside of their physical location without explicit permission from Fitstop.
Furthermore, Fitstop franchisees are not allowed to market their franchised business or solicit potential customers or members outside of their designated territory. This restriction ensures that franchisees focus their efforts on their assigned geographical area and do not encroach upon the territories of other franchisees. The FDD specifies that Fitstop will not open or operate, nor license any third party to open or operate, another System Business under the Proprietary Marks from a physical location within the Designated Territory during the agreement term.
However, there is a limited exception: a Fitstop franchisee may advertise and promote their business outside of their designated territory if the area is contiguous to their territory, has not been granted to another franchisee or developer, and Fitstop provides prior written consent. This exception allows for some flexibility in marketing efforts, but it requires careful consideration of neighboring territories and adherence to Fitstop's approval process. These territorial limitations are designed to protect each franchisee's market area and maintain the integrity of the Fitstop brand.