Is Fitstop obligated to approve my request to open additional franchises in my Designated Territory?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.4 No Additional Franchises and/or Franchise Rights. Unless we agree otherwise in a form of addendum to this Agreement, you are not entitled to any right or option to develop any additional Franchises at any location other than the Franchised Business.
During the Term, you may, by written notice to us request our approval for you to open one or more additional franchises in your Designated Territory, but we are under no obligation to award you the same.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop is not obligated to approve a franchisee's request to open additional franchises within their designated territory. The FDD states that unless otherwise agreed upon in an addendum to the Franchise Agreement, a franchisee is not entitled to any right or option to develop additional Fitstop franchises at any location other than the initially franchised business.
However, the FDD does state that a franchisee can request approval to open additional franchises in their designated territory by providing written notice to Fitstop. Despite this allowance, Fitstop is under no obligation to grant approval for additional locations.
This policy is fairly common in franchising, as franchisors often want to maintain control over market development and ensure that additional locations are strategically placed and properly managed. A prospective Fitstop franchisee should discuss Fitstop's criteria and process for awarding additional franchises to understand what factors will be considered if they wish to expand their operations within their designated territory.