What is the prohibited action regarding diverting members or potential members to a Fitstop competitor?

Based on the 2024 Fitstop Franchise Disclosure Document, franchisees are restricted from marketing their Fitstop franchise or soliciting potential customers or members outside of their designated territory. This means a Fitstop franchisee cannot actively try to attract customers located outside the specific geographic area outlined in their franchise agreement.

This restriction ensures that each Fitstop location has a defined market area to focus on without direct competition from other Fitstop franchisees. It helps to maintain the integrity of the franchise system and prevents franchisees from encroaching on each other's territories. This limitation is fairly standard in the franchise industry, as franchisors typically grant exclusive or protected territories to their franchisees.

However, the FDD also states that franchisees may accept business and inquiries from prospective and existing members and customers. This implies that while active solicitation outside the designated territory is prohibited, a franchisee is allowed to serve customers who proactively seek out their Fitstop location, even if those customers reside outside the franchisee's designated territory. Franchisees should seek clarification from Fitstop regarding what specific marketing activities are permissible to avoid inadvertently violating the territorial restrictions.