Does the restriction on unauthorized transfer apply to the addition or transfer of any partnership interest in a partnership Fitstop franchisee?

According to Fitstop's 2024 Franchise Disclosure Document, the restrictions on unauthorized transfers do apply to the addition or transfer of any partnership interest in a partnership franchisee. Specifically, Section 15.1 states that a franchisee cannot assign or transfer any interest in the franchise without Fitstop's express written consent.

Section 16 of the FDD further clarifies that this restriction extends to the transfer or issuance of shares in a corporate franchisee, as well as the addition or transfer of any partnership interest in a partnership franchisee. This means that if a Fitstop franchisee operates as a partnership, any changes to the partners or their ownership percentages are subject to Fitstop's approval.

For a prospective Fitstop franchisee, this means that they must seek approval from Fitstop before making any changes to the ownership structure of their business, whether it's a corporation or a partnership. Failure to obtain this approval could be considered a breach of the franchise agreement and could potentially lead to termination of the franchise.