factual

Does Fitstop provide site selection guidelines in writing for selecting the Premises?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

We will provide any site selection guidelines and assistance in connection with selecting the Premises, to the extent the same has been reduced to writing in the Manuals or otherwise. We will also review, and subsequently approve/reject, any site you propose as a potential Premises as detailed more fully below in this Item. (Franchise Agreement, Section 9);

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 will make reasonable efforts to approve or reject any proposed location within 30 days of the date you provide us with all requested materials. If we determine that an on-site evaluation is necessary, then you must: (i) submit to us in the form we specify a description of the site prior to our representative conducting its on-site evaluation, including evidence that the site satisfies our site selection guidelines and any other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site; and (ii) reimburse us for the expenses incurred in connection with such an evaluation. If we do not provide our specific approval of a proposed location within this 30-day period, the proposed location will be deemed rejected.

You must secure a Premises within six (6) months of the date you enter into your Franchise Agreement with us. If you are unable to find a suitable site within this timeline, then we will have the right to terminate your Franchise Agreement upon written notice.

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 site selection guidelines in writing. Fitstop will provide site selection guidelines and assistance in connection with selecting the Premises, to the extent that the same has been reduced to writing in the Manuals or otherwise.

Fitstop may provide current written site selection guidelines and any other site selection counseling and assistance they believe is advisable. These guidelines may require the franchisee to conduct an evaluation of the demographics of the market area for the location at their own expense. Fitstop will use these factors to determine if the proposed site is suitable for the Franchised Business.

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 will make reasonable efforts to approve or reject any proposed location within 30 days of receiving all requested materials. If Fitstop determines that an on-site evaluation is necessary, the franchisee must submit a description of the site and evidence that it satisfies Fitstop's site selection guidelines. The franchisee must also reimburse Fitstop for the expenses incurred in connection with the evaluation.

The franchisee must secure a Premises within six months of signing the Franchise Agreement. Failure to find a suitable site within this timeline gives Fitstop the right to terminate the Franchise Agreement upon written notice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.