Can Fitstop organize the build-out of the Premises instead of the franchisee?
Fitstop Franchise · 2024 FDDAnswer 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.
- 9.5.3 You (and, if applicable, your Franchise Owners) are solely responsible for the buildout and any construction required in connection with the development of your Franchised Business in order to ensure that the Premises complies with all System standards and specifications, including the (a) design and layout of the Franchised Business, and (b) the corresponding package of furniture, fixtures, equipment and/or other Required Items we designate in the Manuals for the buildout and equipping of the Franchised Business.
You must also:
9.5.3.1 utilize all Approved Suppliers that we designate for any Required Item (product or service) in connection with the buildout of the Franchised Business at the Premises, as we may designate in the Manuals or otherwise in writing;
9.5.3.2 provide us with updates and reports throughout the buildout of your Franchised Business and Premises on the interval we set forth in the Manuals or, in the event no specific timeline is provided therein, not less than once every two (2) calendar weeks;
9.5.3.3 provide us with, and receive our consent with respect to, the plans for the build-out including the plans, design, contractors employed, budget and time frame for the completion of the build-out;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, while the franchisee is typically responsible for the initial build-out of the premises, Fitstop may, at its discretion, organize the build-out instead. 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 premises comply with all Fitstop system standards and specifications, including the design, layout, and the required furniture, fixtures, and equipment.
Even if Fitstop manages the build-out, the franchisee must use Fitstop's approved suppliers for all required items, provide regular updates on the build-out progress, and obtain Fitstop's consent for the build-out plans, including the design, contractors, budget, and timeline. The franchisee remains responsible for ensuring the build-out is completed by licensed contractors in a proper manner, securing appropriate insurance, correcting any defects, ensuring compliance with all requirements in the manuals and government regulations, and paying all amounts due in connection with the build-out.