What is the meaning of 'Approved Services' in the Fitstop Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 1.1 We have the right to license and we administer a system (the "Franchise System") that offers and awards franchises (the "Franchise") for the right to indepenedently own and operate a fitness facility (each, a "System Business") that features, offers, sell and/or provides: (i) membership-based and other fitness classes combining strength training, nutritional information and other fitness-related instruction and training; (ii) access to various fitness and gym equipment; (iii) group fitness training and any other services that we designate or authorize in our proprietary manual(s) (the "Manual(s)") and/or otherwise in writing (collectively with subparts (i)-(ii), the "Approved Services"); and (iv) any fitness apparel, merchandise, nutritional items, branded and/or privately-labeled retail items that we designate or otherwise approve in writing (collectively, the "Approved Products").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, 'Approved Services' are defined as the services that a franchisee is authorized to offer. These include membership-based and other fitness classes that combine strength training, nutritional information, and other fitness-related instruction and training. Approved Services also include access to various fitness and gym equipment, group fitness training, and any other services that Fitstop designates or authorizes in its proprietary manuals or in writing.
Fitstop franchisees are obligated to provide only the Approved Services at and from their approved Premises, unless Fitstop agrees otherwise in a separate, signed agreement. This restriction ensures that franchisees adhere to the brand's standards and offerings, maintaining consistency across all Fitstop locations. Franchisees must not deviate from these approved services without explicit consent from Fitstop.
The definition of 'Approved Services' also impacts pricing. Fitstop may implement pricing policies and guidelines, including specifying maximum prices for Approved Products or services. Fitstop can change these recommended or maximum retail prices as needed to protect its commercial interests, issuing new price lists upon notice. This allows Fitstop to manage pricing strategies across the franchise network.
Understanding the scope of 'Approved Services' is crucial for prospective Fitstop franchisees. It defines the core offerings of the business and ensures compliance with Fitstop's standards. Franchisees need to stay informed about any updates or changes to the Approved Services through the manuals or written notices to remain compliant with the Franchise Agreement.