How long does a Fitstop franchisee's territorial right last?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Subject to our reserved rights set forth more fully below in this Item, we will not open or operate, or license any third party a license to own or operate, a System Business that operates under the Proprietary Marks from a premises that is physically located within your Designated Territory. You will be afforded this territorial right until such time that the Franchise Agreement governing the Designated Territory at issue expires or is terminated.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee's territorial rights last until the Franchise Agreement expires or is terminated. Fitstop grants franchisees territorial rights within a Designated Territory, and the franchisor will not open or operate, or license any third party to open or operate, a System Business under the Proprietary Marks from a premises physically located within the franchisee's Designated Territory.
However, Fitstop retains several rights within and outside the Designated Territory. These include the right to establish and operate other Franchised Businesses outside the Designated Territory, market similar products and services under different trademarks, and distribute approved products and services through alternative channels. Fitstop also reserves the right to operate System Businesses in non-traditional venues such as academic institutions, military bases, "big box" gyms, hotels, and airports, even within a franchisee's Designated Territory.
It is important to note that Fitstop's franchise agreement does not grant exclusive territorial rights. Franchisees may face competition from company-owned or other franchised locations. Prospective franchisees should carefully consider these reserved rights and the potential for competition when evaluating the Fitstop franchise opportunity.