Can the parties agree to designate the Fitstop Designated Territory outside of the Franchise Agreement?

According to Fitstop's 2024 Franchise Disclosure Document, the brand will designate the territory in the Franchise Agreement before execution. However, Fitstop and the franchisee can agree to designate the territory in a separate agreement. This provides flexibility for both parties, allowing them to finalize territory details outside the standard agreement if needed.

This flexibility could be beneficial in situations where the territory requires further evaluation or negotiation. For example, if a prospective franchisee is considering multiple locations or if Fitstop is still assessing the market potential of a specific area, a separate agreement allows for more time and customization. However, it's crucial for the franchisee to understand the terms of this separate agreement thoroughly, as it will define their exclusive rights and responsibilities within the designated territory.

Prospective Fitstop franchisees should seek legal counsel to review both the Franchise Agreement and any separate agreement related to the Designated Territory. This ensures they fully understand their rights and obligations, as well as the potential impact on their business operations and profitability. It is also important to clarify what happens if the separate agreement expires or is terminated – how will the designated territory be defined in that case?