factual

Can Fitstop organize the build-out of the premises?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

9.5.2 You must undertake the build-out of the Premises.

We may at our reasonable discretion organize the build-out of the Premises.

Irrespective of whether we or you undertake the buildout, we shall be entitled to review, approve and confirm the design and build-out of the Premises.

In consideration for those services, you must pay us for any reasonable project design and site approval fees upon demand from us.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the option to organize the build-out of the franchise location. While the franchisee is typically responsible for undertaking the build-out, Fitstop may choose to organize it at their discretion. However, regardless of who undertakes the build-out, Fitstop retains the right to review, approve, and confirm the design and construction of the premises.

If Fitstop organizes the build-out, the franchisee is responsible for paying Fitstop's reasonable project design and site approval fees upon demand. The franchisee is also responsible for ensuring the build-out complies with all System standards and specifications, including the design, layout, and the required furniture, fixtures, and equipment.

Even if the franchisee is managing the build-out, they must use Fitstop's approved suppliers for any required items, provide regular updates and reports on the build-out progress, and obtain Fitstop's consent regarding the build-out plans, design, contractors, budget, and timeline. The franchisee is also responsible for engaging competent, licensed contractors, securing appropriate insurances, correcting any defects, ensuring compliance with all requirements specified in the manuals and government regulations, and verifying compliance with all applicable laws and regulations. Ultimately, the franchisee is responsible for paying all amounts due in connection with the build-out and other development activities.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.