What is the meaning of 'Premises' in the Fitstop Franchise Agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
2.1 Franchise Award; Approved Premises. We award you the right, and you undertake and accept the obligation, to independently own and operate the Franchised Business from the location you propose, we approve and you secure in accordance with the terms of this Agreement (the "Premises"). You
acknowledge that the rights granted in this Agreement only award you the right to: (i) operate the Franchised Business in accordance with our System standards and specifications from the specific Premises that we approve in writing; and (ii) market, advertise and promote the Franchised Business within the geographical area we designate in Schedule 2 to this Agreement (your "Designated Territory"). The Premises, once approved by us and secured by you, will be set forth in the Data Sheet attached as Schedule 1 to this Agreement (the "Data Sheet").
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the 'Premises' refers to the specific physical location from which a franchisee is authorized to operate their Fitstop business. Fitstop must approve this location in writing, and the franchisee must secure it according to the terms of the Franchise Agreement. The approved Premises will then be detailed in the Data Sheet, which is attached as Schedule 1 to the agreement.
The rights granted to a Fitstop franchisee are limited to operating the Franchised Business in accordance with Fitstop's System standards and specifications from the approved Premises. Additionally, franchisees can only market, advertise, and promote the Franchised Business within their Designated Territory, which is the geographical area designated in Schedule 2 of the Franchise Agreement. Franchisees can only provide approved services and products at and from the Premises, unless Fitstop agrees otherwise in writing.
The franchisee is responsible for locating, proposing, and securing a lease for the Premises, ensuring the lease contains all provisions and covenants that Fitstop designates. The lease is subject to Fitstop's review and approval. The franchisee is also responsible for all costs associated with securing and maintaining the Premises, including build-out, improvements, and compliance with regulations. Fitstop can access the premises and requires franchisees to operate the franchise exclusively from the approved Premises, maintaining specific hours of operation.
Relocation of the Fitstop business is possible under certain conditions, such as lease expiration or damage to the Premises, but requires Fitstop's prior written approval. The franchisee is responsible for all costs associated with relocation and ensuring the new premises conform to Fitstop's image and standards. Fitstop also retains the right to have the franchisee assign the lease to them or their nominee under certain circumstances.