What is Fitstop relying on the franchisee to do regarding representations made during solicitation?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.3 You acknowledge that neither we nor anyone purporting to act for us has made any promises or representations concerning the sales volumes which your Franchise will produce, the profits you will make, your likelihood of success, or any other matter in connection with the proposed Franchise other than those which the Parties set forth in this Agreement and any signed amendments or exhibits or schedules hereto. If we or any of our agents have made such promises, you must ensure that they are set forth in writing in this Agreement or in an amendment, schedule, or exhibit to this Agreement and that we and you sign any such amendment or exhibit. We, in granting this Franchise, are relying on you to see that the Parties reduce to writing all such matters and attach the documentation that describes those representations to this Agreement and to which you considered material to your solicitation. If you do not reduce such representations to writing and attach those documents to this Agreement, you agree that you will not be able to rely in any way on such promises or representations and we will not be bound by them. YOU MUST ENSURE THAT ALL PROMISES AND REPRESENTATIONS FOR PRESENT AND FUTURE RESULTS AND RIGHTS, WHETHER ABSOLUTE OR CONTINGENT, ARE CONTAINED IN THE FRANCHISE AGREEMENT OR THEY MAY BE FOREVER LOST.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop is relying on the franchisee to ensure that any promises or representations made during the franchise solicitation process are documented in writing and attached to the Franchise Agreement. Specifically, Fitstop requires the franchisee to reduce to writing all matters that they considered material to their solicitation.
Fitstop emphasizes that if these representations are not documented and attached to the agreement, the franchisee will not be able to rely on them, and Fitstop will not be bound by them. This places the onus on the franchisee to diligently capture all promises and representations in writing to ensure they are enforceable.
This requirement is a critical aspect of the franchise agreement, as it determines the scope of what Fitstop is legally obligated to provide. By requiring written documentation, Fitstop aims to avoid disputes based on verbal or undocumented claims. Prospective franchisees should take this requirement seriously and ensure that all material representations are properly documented before signing the agreement. This practice is fairly standard in franchising to protect both parties and ensure clarity regarding the terms and expectations of the franchise relationship.