factual

Will Fitstop review and approve a potential Premises that I propose?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

D. Site Selection (Franchise Agreement, Section 9)

You must assume all costs, liabilities, expenses and responsibility for: (i) locating, obtaining and developing a Premises; and (ii) constructing, equipping, remodeling and/or building out the Premises for use as a Franchised Business, all in accordance with our System standards and specifications. We may provide you with our current written site selection guidelines, to the extent such guidelines are in place, and any other site selection counseling and assistance we believe is advisable. Our guidelines for site selection may require that you conduct, at your expense, an evaluation of the demographics of the market area for the location. We may then use these factors in determining the suitability of your proposed site for the Premises of your Franchised Business. We do not typically own the premises and/or lease (or sublease) it to you, but we reserve the right to do so. In deciding whether to approve a site, we may also consider, among other things: (i) demographic characteristics, traffic patterns, allowed design and building, parking, visibility, allowed signage, and the predominant character of the neighborhood surrounding the proposed site; (ii) competition from other businesses selling similar fitness services within the area and the proximity of the site to these businesses, as well as the nature of all other businesses in proximity to the site; (iii) zoning restrictions, soil and environmental issues, and other commercial characteristics; and (iv) the size, appearance, and other physical characteristics of the proposed site. We must also have the opportunity to review any lease or purchase agreement for the proposed Premises before you enter into such an agreement.

We may condition our approval of any site you propose on a number of conditions, including: (i) providing a written representation from the landlord of the Premises that you will have the right to operate the Franchised Business throughout the term of your Franchise Agreement; and (ii) you and landlord executing an appropriate form of addendum/rider to the Lease for the Premises in a form that affords Franchisor any lease terms that we prescribe in our Manuals (the "Prescribed Lease Terms").


[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING]

We will make reasonable efforts to approve or reject any proposed location within 30 days of the date you provide us with all requested materials. If we determine that an on-site evaluation is necessary, then you must: (i) submit to us in the form we specify a description of the site prior to our representative conducting its on-site evaluation, including evidence that the site satisfies our site selection guidelines and any other information and materials that we may reasonably require, including a letter of intent or other evidence that confirms your favorable prospects for obtaining the site; and (ii) reimburse us for the expenses incurred in connection with such an evaluation. If we do not provide our specific approval of a proposed location within this 30-day period, the proposed location will be deemed rejected.

You must secure a Premises within six (6) months of the date you enter into your Franchise Agreement with us. If you are unable to find a suitable site within this timeline, then we will have the right to terminate your Franchise Agreement upon written notice.

Regardless of the above, our approval of a site you proposed for a given Franchised Business only means that the site meets our minimum requirements for a typical Franchised Business. It does not, and may not be construed to, constitute any kind of guarantee, promise, representation or other affirmative statement or judgment that your Franchised Business will achieve any certain level of revenue when operating from said location.

E. Time to Open Your Business (Franchise Agreement, Section 9)

The length of time we estimate between your signing of the Franchise Agreement and opening the Franchised Business governed by that agreement will typically be between six (6) and 12 months. You must open your Franchised Business no later than 12 months after you sign the Franchise Agreement. If you fail to open within the required time period, then we may terminate your Franchise Agreement upon written notice.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 24–35)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop will review and either approve or reject any site a franchisee proposes for their Franchised Business. Fitstop may provide written site selection guidelines and counseling. The franchisee bears all costs associated with locating, obtaining, and developing a suitable premises.

Fitstop's decision to approve a site will be based on factors such as demographic characteristics, traffic patterns, competition, zoning restrictions, and the physical characteristics of the proposed site. Fitstop also requires the opportunity to review any lease or purchase agreement before the franchisee enters into it. Fitstop may also require a written representation from the landlord ensuring the franchisee's right to operate throughout the Franchise Agreement term, and the execution of an addendum to the lease with prescribed lease terms.

Fitstop will make reasonable efforts to approve or reject any proposed location within 30 days of receiving all requested materials. If an on-site evaluation is necessary, the franchisee must provide a description of the site and reimburse Fitstop for the expenses incurred during the evaluation. Failure to receive specific approval within the 30-day period will result in the proposed location being deemed rejected. Franchisees must secure a Premises within six months of signing the Franchise Agreement, or Fitstop has the right to terminate the agreement.

It is important to note that Fitstop's approval of a site only means that it meets the minimum requirements for a typical Franchised Business and does not guarantee any specific level of revenue. The estimated time between signing the Franchise Agreement and opening the Franchised Business is typically between six and 12 months, with a requirement to open no later than 12 months after signing. Failure to open within this timeframe may result in termination of the Franchise Agreement.

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.