Who is responsible for the buildout and any construction required in connection with the development of the Fitstop Franchised Business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.5.3 You (and, if applicable, your Franchise Owners) are solely responsible for the buildout and any construction required in connection with the development of your Franchised Business in order to ensure that the Premises complies with all System standards and specifications, including the (a) design and layout of the Franchised Business, and (b) the corresponding package of furniture, fixtures, equipment and/or other Required Items we designate in the Manuals for the buildout and equipping of the Franchised Business.
You must also:
9.5.3.1 utilize all Approved Suppliers that we designate for any Required Item (product or service) in connection with the buildout of the Franchised Business at the Premises, as we may designate in the Manuals or otherwise in writing;
9.5.3.2 provide us with updates and reports throughout the buildout of your Franchised Business and Premises on the interval we set forth in the Manuals or, in the event no specific timeline is provided therein, not less than once every two (2) calendar weeks;
9.5.3.3 provide us with, and receive our consent with respect to, the plans for the build-out including the plans, design, contractors employed, budget and time frame for the completion of the build-out;
9.5.3.4 engage competent, licensed contractors to complete the works in a proper and workmanlike manner and in a manner to ensure timely completion of the buildout;
9.5.3.5 manage, supervise, and ensure that the buildout is completed by competent, licensed tradesmen in a proper and workmanlike manner;
9.5.3.6 secure appropriate insurances in connection with the buildout;
9.5.3.7 correct any defects in the buildout;
9.5.3.8 ensure the build-out complies with all requirements we specify in the Manual(s) and any government regulatory requirements;
9.5.3.9 verify compliance with all laws and regulations that may be imposed by local, state, and federal agencies in relation to the buildout; and
9.5.3.10 ensure that you pay any and all amounts due in connection with the buildout and other development activities associated with establishing the Franchised Business at the Premises, which may include amounts due to our Approved Supplier(s) and/or us.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is primarily responsible for the buildout and any construction needed to develop their Franchised Business. This includes ensuring the premises adhere to all System standards and specifications, such as the design, layout, and the required furniture, fixtures, and equipment.
Specifically, the franchisee must use Fitstop's designated Approved Suppliers for any required items, provide regular updates on the buildout progress, and obtain Fitstop's consent regarding the build-out plans, design, contractors, budget, and timeline. The franchisee is also responsible for engaging licensed contractors, managing the buildout, securing appropriate insurance, correcting any defects, ensuring compliance with all specified requirements and government regulations, and paying all associated amounts.
While the franchisee is generally in charge of the buildout, Fitstop may, at its discretion, organize the build-out of the premises. Regardless of who undertakes the buildout, Fitstop retains the right to review, approve, and confirm the design and build-out of the premises. The franchisee must pay Fitstop for any reasonable project design and site approval fees upon demand for these services.
In summary, while Fitstop maintains oversight and approval authority, the responsibility for managing and executing the buildout of the Franchised Business, including all associated costs and compliance matters, rests primarily with the franchisee. This arrangement is fairly typical in the franchise industry, where franchisees usually bear the direct responsibility for site development while adhering to the franchisor's standards and receiving their guidance.