Can the new Franchise Agreement for Fitstop differ substantially from the original agreement?

According to Fitstop's 2024 Franchise Disclosure Document, a new franchise agreement may be required upon the transfer of a franchise. Specifically, if Fitstop requires the transferee to sign the then-current Franchise Agreement, no new initial franchise fee will be required. However, the term of the franchise will be established under the new Franchise Agreement.

This clause is triggered when a franchisee transfers their existing Fitstop franchise to a new owner. As part of the transfer process, Fitstop has the right to require the new owner (the transferee) to execute the then-current version of the franchise agreement. This ensures that all franchisees are operating under the most up-to-date terms and conditions.

The key benefit for the incoming franchisee is that they will not have to pay a new initial franchise fee if they are required to sign the then-current agreement. However, the new agreement will dictate the term (length) of the franchise, which could differ from the original agreement's term. This could be advantageous or disadvantageous depending on the specific terms of the new agreement and the remaining term of the original agreement. The franchisee should carefully review the new agreement to understand the length of the franchise term and any other changes from the original agreement.