What are 'Prescribed Lease Terms' in the context of Fitstop's site selection?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We may condition our approval of any site you propose on a number of conditions, including: (i) providing a written representation from the landlord of the Premises that you will have the right to operate the Franchised Business throughout the term of your Franchise Agreement; and (ii) you and landlord executing an appropriate form of addendum/rider to the Lease for the Premises in a form that affords Franchisor any lease terms that we prescribe in our Manuals (the "Prescribed Lease Terms").
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, 'Prescribed Lease Terms' refer to specific lease terms that Fitstop requires in the lease agreement between the franchisee and the landlord. Fitstop may condition its approval of a proposed site on the franchisee and landlord executing an addendum or rider to the lease that incorporates these terms. These terms are detailed in Fitstop's manuals.
For a prospective Fitstop franchisee, this means that when securing a location, the lease agreement must include specific clauses or conditions that Fitstop mandates. These 'Prescribed Lease Terms' are not explicitly detailed in this section of the FDD but are referenced as being found in Fitstop's manuals. The franchisee needs to ensure that the landlord is willing to agree to these terms as a prerequisite for Fitstop's site approval.
This requirement gives Fitstop a degree of control over the lease terms, potentially ensuring that franchisees have lease agreements that align with Fitstop's operational needs and protect its interests. It is common in franchising for franchisors to have some level of input or approval over the lease terms to safeguard their brand and the franchisee's ability to operate successfully. Prospective franchisees should carefully review Fitstop's manuals to understand these 'Prescribed Lease Terms' fully before committing to a location or lease agreement.