Is Fitstop restricted from opening or operating other System Businesses outside of my Designated Territory?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Reservation of Rights.
Notwithstanding anything contained in this Agreement, we and/or our affiliates hereby reserve the exclusive right to: (i) establish and operate, and license any third party the right to establish and operate, other System Businesses using the Proprietary Marks at any location outside of the Designated Territory; (ii) market, offer and sell products and services that are similar to the products and services offered by the Franchised Business under a different trademark or trademarks at any location, within or outside the Designated Territory; (iii) use the Proprietary Marks and System, other such marks we may designate, to distribute the Approved Products in any alternative channel of distribution, within or outside the Designated Territory (including the Internet, mail order, catalog sales, toll-free numbers, wholesale stores, etc.); (iv) to acquire, merge with, or otherwise affiliate with, and after that own and operate, and franchise or license others to own and operate, any business of any kind, including, without limitation, any business that offers products or services the same as or similar to the Approved Products and/or Approved Services (but under different marks), within or outside the Designated Territory; (v) use the Proprietary Marks and System, and license others to use the Proprietary Marks and System, to engage in any other activities not expressly prohibited in this Agreement and; and (vi) own and operate, or license third parties the right to own or operate, a System Business from a premises that is located within a "Non-Traditional Venue" that is any captive venue or comparable location, including without limitation, academic institutions, military bases, hotels and/or other resorts, "big box" gyms, corporate office buildings and/or complexes, sports arenas and stadia, train stations, casinos and/or other comparable venues, both within or outside the Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop and its affiliates retain the exclusive right to establish and operate other System Businesses using the Proprietary Marks at any location outside of a franchisee's Designated Territory. This means that while a franchisee is granted a specific territory, Fitstop is not restricted from opening or licensing other Fitstop locations outside of that area.
Fitstop also reserves the right to market and sell similar products and services under different trademarks at any location, whether inside or outside the Designated Territory. They can also use the Proprietary Marks and System to distribute Approved Products through alternative channels like the Internet or wholesale stores, regardless of location.
Furthermore, Fitstop can acquire, merge with, or affiliate with any business, even those offering similar products or services under different marks, within or outside the Designated Territory. They can also operate or license System Businesses in "Non-Traditional Venues" such as academic institutions, military bases, hotels, gyms, corporate buildings, sports arenas, train stations, and casinos, irrespective of the franchisee's Designated Territory. These reservations of rights allow Fitstop to expand its brand and services through various channels and locations without being restricted by individual franchise territories.