Must the new Fitstop location be within the designated territory to be approved for relocation?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not relocate the Premises of your Franchised Business without our written consent, which we will not unreasonably withhold provided: (i) the new location is located within your Designated Territory and meets our thencurrent criteria for a System-associated Premises; and (ii) you pay our then-current relocation fee (if any). When considering a request for relocation, we may take into account the desirability of the proposed new location, its distance from other and future-planned franchised locations, the traffic patterns, security, cost, and the demographics of the area, proximity of competition, parking, as well as any other related factors we deem appropriate. These are the same kinds of factors we consider when evaluating your initial Premises.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee needs Fitstop's written consent to relocate their franchise. Fitstop will not unreasonably withhold consent if the new location is within the franchisee's designated territory and meets Fitstop's current criteria for a System-associated Premises. The franchisee must also pay Fitstop's then-current relocation fee, if any.
When Fitstop considers a relocation request, they may evaluate factors such as the desirability of the new location, its distance from other franchised locations, traffic patterns, security, cost, demographics, competition proximity, and parking. These considerations are similar to those used when evaluating the initial premises.
This means that if a Fitstop franchisee wants to move their location, they are restricted to moving within their originally assigned territory unless they receive special permission from Fitstop. This protects the territorial rights of other franchisees and maintains the brand's strategic placement. The relocation is not guaranteed even within the territory, as Fitstop retains the right to assess the suitability of the new site based on various business factors.