Will Fitstop review and approve or reject a proposed site for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
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 a proposed site for a franchise and either approve or reject it. Fitstop will make reasonable efforts to approve or reject any proposed location within 30 days of receiving all requested materials from the franchisee. However, if Fitstop requires an on-site evaluation, the franchisee must provide a description of the site that shows it meets Fitstop's site selection guidelines, along with any other required information, such as a letter of intent. The franchisee is also responsible for reimbursing Fitstop for expenses related to the on-site evaluation. If Fitstop does not provide specific approval within the 30-day period, the proposed location is considered rejected.
The FDD states that Fitstop may provide franchisees with written site selection guidelines and counseling. These guidelines may require the franchisee to conduct a demographic evaluation of the market area at their own expense, which Fitstop may then use to determine the site's suitability. Fitstop will consider factors such as demographic characteristics, traffic patterns, zoning restrictions, competition, and the site's physical characteristics. Fitstop must also have the opportunity to review any lease or purchase agreement before the franchisee enters into it.
Fitstop may also place conditions on site approval, such as requiring a written representation from the landlord that the franchisee can operate the business for the term of the Franchise Agreement and that the franchisee and landlord execute an addendum to the lease with terms prescribed by Fitstop in its manuals. The FDD emphasizes that Fitstop franchisees must secure a premises within six months of signing the Franchise Agreement. Failure to find a suitable site within this timeframe gives Fitstop the right to terminate the agreement with written notice. Franchisees must open their Fitstop location within 12 months of signing the Franchise Agreement, or Fitstop may terminate the agreement.