Does Fitstop provide site selection guidelines in writing for potential Fitstop locations?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You must assume all costs, liabilities, expenses and responsibility for: (i) locating, obtaining and developing a Premises; and (ii) constructing, equipping, remodeling and/or building out the Premises for use as a Franchised Business, all in accordance with our System standards and specifications. We may provide you with our current written site selection guidelines, to the extent such guidelines are in place, and any other site selection counseling and assistance we believe is advisable. Our guidelines for site selection may require that you conduct, at your expense, an evaluation of the demographics of the market area for the location. We may then use these factors in determining the suitability of your proposed site for the Premises of your Franchised Business. We do not typically own the premises and/or lease (or sublease) it to you, but we reserve the right to do so. In deciding whether to approve a site, we may also consider, among other things: (i) demographic characteristics, traffic patterns, allowed design and building, parking, visibility, allowed signage, and the predominant character of the neighborhood surrounding the proposed site; (ii) competition from other businesses selling similar fitness services within the area and the proximity of the site to these businesses, as well as the nature of all other businesses in proximity to the site; (iii) zoning restrictions, soil and environmental issues, and other commercial characteristics; and (iv) the size, appearance, and other physical characteristics of the proposed site. We must also have the opportunity to review any lease or purchase agreement for the proposed Premises before you enter into such an agreement.
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, Fitstop may provide written site selection guidelines. Item 11 indicates that Fitstop "may provide you with our current written site selection guidelines, to the extent such guidelines are in place." Additionally, Fitstop will provide site selection assistance in connection with selecting the Premises, to the extent the same has been reduced to writing in the Manuals or otherwise.
Fitstop also outlines several factors they may consider when deciding whether to approve a site, including demographic characteristics, traffic patterns, parking, visibility, competition, zoning restrictions, and the size and appearance of the proposed site. The franchisee is responsible for all costs associated with securing and developing the premises. Fitstop must have the opportunity to review any lease or purchase agreement for the proposed Premises before the franchisee enters into such an agreement.
Fitstop also requires that the franchisee secure a premises within six months of signing the Franchise Agreement. If a suitable site cannot be found within this timeframe, Fitstop has the right to terminate the Franchise Agreement. However, Fitstop's approval of a site only means that it meets their minimum requirements and does not guarantee any specific level of revenue for the Franchised Business.