Who is responsible for the costs of fitting out the new Fitstop premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
the new Premises and relocating the Franchise (including the build-out of the new Premises in accordance with Franchise Agreement).
- 9.9.4 You acknowledge and agree that: (1) compliance with this section is at your sole cost and expense; (2) it is in the best interests of both parties that the Franchise be open for trade from the new Premises as soon as possible; and (3) subject to relevant laws, the new Premises are to be fitted out at your cost to conform with the then prevailing image and otherwise in accordance with this Section.
- 9.10 Acknowledgements Regarding Subsequent Changes to Premises or Lease. You are liable for all costs incurred in association with the following events (including, but not limited to, negotiations and amendments to the lease or entry into a new or renewed lease and costs and fees we may incur in response):
- 9.10.1 where you, the landlord, or licensor of the lease requests an amendment to the terms of the lease;
- ©2024 Fitstop USA, Inc. 9.10.2 where there is an assignment of the lease or event that necessitates an assignment lease; or
9.10.3 where there is a renewal of the lease or an event that necessitates the renewal of the lease.
Section 10: Ownership and Management of the Franchised Business
- 10.1 You identify in Schedule 1 to this Agreement the identity of and other necessary information related to your Principals. You certify and warrant that all of the Franchise's owners, shareholders, members, managers, partners, officers, and directors listed in Schedule 1, will execute the Guaranty attached as Schedule 3 to this Agreement, and will execute such other documents as necessary.
- 10.2 If you are a business entity, then you must: (i) identify each individual or other entity that owns or holds any ownership interest in the Franchisee in Schedule 1 (each, a "Franchise Owner" or "Principal"); and (ii) ensure each Franchise Owner executes the form of Personal Guarantee attached to this Agreement as Schedule 3 (the "Personal Guaranty" or "Guaranty").
- 10.3 The individual you identify in Schedule 1 as the "Franchise Operator" shall have authority to speak for and bind you in all matters pertaining to the operation of the Franchise.
- 10.4 You warrant to us that we may rely on the authority of the Franchise Operator until such time as you notify us in writing by a majority vote of those with an ownership interest in the Franchise that you have assigned a different owner with no less than a 25% ownership interest in the "Franchisee" as the Franchise Operator with respect to the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchisee is responsible for the costs associated with fitting out new premises. Specifically, if relocation of the Fitstop business is approved, the franchisee bears the cost to conform the new premises to Fitstop's image and standards.
This includes responsibility for the build-out of the new premises. The franchisee must get Fitstop's consent regarding the build-out plans, including design, contractors, budget, and timeline. They must also engage competent, licensed contractors to complete the work in a timely and workmanlike manner, manage and supervise the build-out, secure appropriate insurance, correct any defects, and ensure compliance with Fitstop's specifications and government regulations.
Furthermore, the franchisee is responsible for paying all amounts due in connection with the build-out and other development activities, which may include payments to Fitstop's approved suppliers or directly to Fitstop. This extends to maintaining and refurbishing the premises and equipment according to Fitstop's specifications, ensuring compliance with lease requirements and Fitstop's presentation standards, all at the franchisee's expense.