Can Fitstop require a franchisee to assign the lease of the Premises to them or their nominee?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.3.5 Where you have entered into a lease in respect of the Premises: (1) we may at any time during the Term notify you in writing that we require you to assign the lease of the Premises to us or our nominee; and (2) you must within seven (7) calendar days of such request assign the lease of the Premises to us or our nominee and sign all documents and take all necessary steps to effect the assignment of the lease of the Premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop may require a franchisee to assign the lease of their premises to Fitstop or their nominee. Specifically, Fitstop can notify the franchisee in writing at any time during the term of the franchise agreement that they require the franchisee to assign the lease.
The franchisee must then assign the lease to Fitstop or its nominee within seven calendar days of receiving such a request. This includes signing all necessary documents and taking all required steps to complete the assignment.
This provision gives Fitstop significant control over the location of the franchise. It is important for a prospective franchisee to understand that Fitstop has the right to take over the lease, potentially impacting the franchisee's business operations and investment in the location. Franchisees should consider this when negotiating their initial lease and factor in the possibility of needing to relocate on short notice.