Can I market the Fitstop Franchised Business outside of my Designated 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.
- 2.3 Reservation of Rights. Notwithstanding anything contained in this Agreement, we and/or our affiliates hereby reserve the exclusive right to: (i) establish and operate, and license any third party the right to establish and operate, other System Businesses using the Proprietary Marks at any location outside of the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are generally restricted from marketing outside their designated territory. The FDD specifies that franchisees may not market the Franchised Business or otherwise solicit any potential customers or members outside of their Designated Territory.
However, there is an exception to this rule. A Fitstop franchisee may advertise and promote the Franchised Business outside of their Designated Territory if two conditions are met: (a) the geographic area where the franchisee wishes to advertise is contiguous to the Designated Territory and that area has not been granted to any other System Business or System franchisee/developer, and (b) Fitstop provides its prior written consent.
This means that while Fitstop generally protects each franchisee's territory, there is some flexibility if the adjacent area is open and the franchisee obtains written approval from Fitstop. This ensures that marketing efforts are coordinated and do not infringe on other franchisees' territories, while also allowing for potential expansion of reach under specific, controlled circumstances.