What ongoing obligations does a Fitstop franchisee have regarding the purchase and maintenance of supplies and equipment?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
mply with all such additions, modifications, and changes at your sole cost and expense except as this Agreement otherwise permits herein.
Section 12: Required Items, Approved Suppliers and Related Obligations
- 12.1 Required Items. Unless we agree otherwise in a separately-signed writing, you must acquire and/or license and/or lease: (i) the furniture, fixtures, equipment, supplies, inventory, Required Software and services we designate in the Manuals or otherwise in writing to (a) build-out and otherwise establish the Franchised Business at the Premises, and (b) operate that Franchised Business on an ongoing basis (collectively, the "Required Items"), in accordance with our then-current System standards and specifications; and (ii) such Required Items from the Approved Supplier, if any, we designate in our Manuals or otherwise in writing.
- 12.2 Ongoing Obligations. To ensure you may service members, you must purchase and maintain in accordance with the specifications set forth in the Manual(s)s such additional supplies and equipment necessary. We may make changes in these standards and specifications. The changes may require you to purchase equipment, supplies, furnishings or other products. You must promptly use the modified standards and specifications at your own expense and as specified in this Agreement within 180 days of the date we provide notice of a formal roll-out with respect to all similarly-situated System franchisees.
- 12.3 Right to Designate and Update List of Approved Supplier(s). We may, but are under no obligation, appoint oursevles and/or our affiliates or any other third party as an Apporved Supplier for one (1) or more Required Items associated with the Franchised Business upon prior written notice via the Manuals or otherwise.
12.4 Approved Services and Approved Products
12.4.1 Approved Products. The Manual(s) will set forth a list of the Approved Products we authorize for offer and retail sale at the Franchised Business.You must and may only use or sell the specific Approved Products at all times at and from the Premises, and must not discontinue or fail to use or offer any Approved Product unless (a) we agree otherwise in writing, or (b) you provide us with prior written notice that such Approved Product is not authorized for sale under applicable law(s) where the Franchised Business is located.
- 12.4.2 Changes in Approved Products. We, where reasonably necessary to protect or promote our legitimate commercial interest, may at any time during the Term: (1) designate a product which is not an Approved Product as an Approved Product; (2) designate a product which is an Approved Product as no longer having that status; and (3) change a standard with respect to an Approved Product, and you must implement the change within 30 calendar days of your receipt of written notice of the change from us.
- 12.4.3 Quality Control and Purchase of Supplies. You must use all services, systems, procedures and methods as reasonably instructed by us in writing to ensure adequate quality control of the Approved Products in compliance with the Franchise System.
- 12.4.4 Approved Services. You may and must only offer and provide the Approved Services as we specify in the Manual(s), and not offer or provide other services or product at the Premises or otherwise in connection with Franchised Business unless we agree otherwise in a separate writing. You shall ensure that the services are promoted and provided in accordance with the Franchise System, the Manual(s), and our written direction from time to time. You shall market, promote and provide the services in a proper and professional manner, in conformity with any applicable standards and statutory requirements, and other requirements made known to you from time to time by us in writing. You shall not accept any offer of personal employment or engagement to conduct any services (including any Approved Services) directly or indirectly for a member in contravention of the arrangements specified by us in writing from time to time.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees have several ongoing obligations related to purchasing and maintaining supplies and equipment. Fitstop requires franchisees to acquire, license, or lease specific furniture, fixtures, equipment, supplies, inventory, Required Software, and services as designated in their manuals or in writing. These items are necessary to build out the franchise and operate it according to Fitstop's system standards. Franchisees must obtain these "Required Items" from approved suppliers, if any are designated by Fitstop.
To properly service members, Fitstop franchisees must purchase and maintain additional necessary supplies and equipment according to the specifications in the manuals. Fitstop retains the right to modify these standards and specifications, which may require franchisees to purchase new equipment, supplies, furnishings, or other products. Franchisees are obligated to implement these modified standards at their own expense within 180 days of receiving notice of a formal rollout to similarly-situated franchisees.
Fitstop also has the right to designate or update the list of approved suppliers for Required Items, potentially including themselves or their affiliates. Franchisees are responsible for keeping their premises clean and ensuring that the premises and all fixtures, fittings, and equipment comply with Fitstop's requirements and professional standards. The premises and equipment must be operated and maintained in first-class condition and repair, adhering to industry standards for cleanliness and safety. Franchisees must promptly correct any deviations from these standards, including replacing flooring if required by Fitstop. Additionally, franchisees must repair and replace fittings, fixtures, equipment, and lighting to comply with lease requirements and Fitstop's presentation standards. Fitstop may also require franchisees to upgrade their premises, furniture, fixtures, equipment, or other Required Items to meet new brand standards, with franchisees bearing the cost of these upgrades within 180 days of notification.