factual

Who is responsible for ensuring the Fitstop premises comply with system standards and specifications during build-out?

Fitstop Franchise · 2024 FDD

Answer 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 ensuring the premises comply with all system standards and specifications during the build-out phase. This responsibility extends to both the design and layout of the franchised business and the procurement of designated furniture, fixtures, equipment, and other required items outlined in Fitstop's manuals. The franchisee must use only Fitstop's approved suppliers for all required items during construction.

To maintain quality control and brand consistency, Fitstop requires franchisees to keep them informed throughout the build-out process. Franchisees must provide regular updates and reports, with a minimum requirement of every two calendar weeks, and must secure Fitstop's consent regarding build-out plans, including design, contractor selection, budget, and project timeline.

In addition to adhering to Fitstop's standards, the franchisee is responsible for engaging competent and licensed contractors to complete the build-out in a proper and workmanlike manner, securing appropriate insurance, correcting any defects, and ensuring compliance with all specified requirements and government regulations. The franchisee is also responsible for paying all amounts due in connection with the build-out and other development activities, including payments to approved suppliers and Fitstop itself. While the franchisee is ultimately responsible, Fitstop retains the right to review, approve, and confirm the design and build-out of the premises, and may also organize the build-out at its discretion, for which the franchisee would be required to pay reasonable project design and site approval fees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.