What obligation does a Fitstop franchisee undertake regarding the operation of the Franchised Business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
and Designated Territory**
©2024 Fitstop USA, Inc. 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").
- 2.2 Territorial Rights within Designated Territory; Related Rights and Limitations. During the term of this Agreement, we will not open or operate, or license any third party the right to open or operate, another System Business under the Proprietary Marks from a physical location within the Designated Territory. The territorial rights in this Section 2.2 shall be subject to our reserved rights detailed below in this Section. You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
- 2.3 Reservation of Rights. Notwithstanding anything contained in this Agreement, we and/or our affiliates hereby reserve the exclusive right to: (i) establish and operate, and license any third party the right to establish and operate, other System Businesses using the Proprietary Marks at any location outside of the Designated Territory;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, as a franchisee, you are obligated to independently own and operate the Franchised Business from an approved location, known as the Premises. Fitstop grants you the right to operate the Franchised Business according to their System standards and specifications, but only from the specific Premises they approve in writing. Additionally, you are granted the right to market, advertise, and promote the Franchised Business within a designated geographical area.
Fitstop also requires that you personally devote full time and best efforts to the operation of the Franchise. If the franchise is executed by more than one individual, then all individuals must personally devote full time and best efforts to the operation of the Franchise. Franchisees must also keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
Furthermore, Fitstop requires franchisees to adhere to their social media policy as described in the Manual(s). Any social media activity not conforming to the Manual(s) must be approved in writing by Fitstop in advance. Franchisees must comply with Fitstop's directions regarding social media activity and must not disparage Fitstop or other franchisees, or post anything that brings harm or disrepute to the Franchise System. Failure to comply with these social media guidelines constitutes a material breach of the Franchise Agreement.