Who is responsible for the build-out of the Fitstop premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
9.5 Build-Out and Establishment of Franchised Business at Approved Premises.
9.5.1 This section applies only in respect of the initial build-out of the Premises and does not apply to the purchase of an existing Franchise or to the refurbishment or upgrade of the Premises, in which case the Sections below (as relevant) will apply.
- 9.5.2 You must undertake the build-out of the Premises.
We may at our reasonable discretion organize the build-out of the Premises.
Irrespective of whether we or you undertake the buildout, we shall be entitled to review, approve and confirm the design and build-out of the Premises.
In consideration for those services, you must pay us for any reasonable project design and site approval fees upon demand from us.
- 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 build-out of the premises. Specifically, the franchisee must ensure the premises comply with all Fitstop system standards and specifications. These standards include the design and layout of the franchised business, as well as the required package of furniture, fixtures, equipment, and other items designated in the manuals. The franchisee is responsible for any construction required to meet these standards.
Fitstop, however, retains the right to organize the build-out of the premises at its discretion. Regardless of who undertakes the build-out, Fitstop has the right to review, approve, and confirm the design and construction of the premises. The franchisee is responsible for paying Fitstop any reasonable project design and site approval fees upon demand for these services.
The franchisee also has several ongoing obligations during the build-out process. These include using only approved suppliers designated by Fitstop for any required items, providing regular updates and reports to Fitstop, and securing Fitstop's consent regarding the build-out plans, design, contractors, budget, and timeline. The franchisee must also engage competent, licensed contractors, manage and supervise the build-out, secure appropriate insurances, correct any defects, ensure compliance with all specified requirements and government regulations, and pay all amounts due in connection with the build-out.