Does Fitstop need to approve the new premises before a franchisee can relocate?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.9.1 If the lease expires during the Term or is terminated through no fault of you, the Premises are destroyed or are unable to be used for at least 70 consecutive calendar days, or if in our reasonable opinion, there is a change in the character of the location of the Premises which is detrimental to the potential of the Franchise to warrant relocation, then you may nominate new premises, which will be subject to the prior written approval of us or we may endeavor to locate a suitable alternative new Premises.
- 9.9.2 If relocation is approved by us, you must propose a suitable new premises for approval by us by no later than 70 calendar days from the date on which you vacate the Premises.
- 9.9.3 The parties will negotiate and agree in good faith the time in relation to your entering into the lease in respect of the new Premises and relocating the Franchise (including the build-out of the new Premises in accordance with Franchise Agreement).
- 9.9.4 You acknowledge and agree that: (1) compliance with this section is at your sole cost and expense; (2) it is in the best interests of both parties that the Franchise be open for trade from the new Premises as soon as possible; and (3) subject to relevant laws, the new Premises are to be fitted out at your cost to conform with the then prevailing image and otherwise in accordance with this Section.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must obtain prior written approval from Fitstop before relocating their franchise. Specifically, if the lease expires, is terminated without fault of the franchisee, the premises are unusable for at least 70 consecutive calendar days, or if Fitstop deems a change in the location detrimental to the franchise's potential, the franchisee may nominate new premises. However, these new premises are subject to Fitstop's prior written approval.
If relocation is approved, the franchisee must propose a suitable new location for Fitstop's approval within 70 calendar days from the date of vacating the original premises. The franchisee is responsible for all costs associated with complying with these relocation requirements.
Fitstop and the franchisee will then negotiate in good faith to agree on the timeline for entering into a lease for the new premises and relocating the franchise, including the build-out of the new premises. The new premises must conform to Fitstop's prevailing image and standards, and it is in both parties' best interest for the franchise to resume operations as quickly as possible at the new location.