factual

Will Fitstop review a proposed site for a potential Fitstop Premises?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

We will provide any site selection guidelines and assistance in connection with selecting the Premises, to the extent the same has been reduced to writing in the Manuals or otherwise. We will also review, and subsequently approve/reject, any site you propose as a potential Premises as detailed more fully below in this Item. (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 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.

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 provide site selection guidelines and assistance in connection with selecting the Premises. Fitstop will also review and subsequently approve or reject any site a franchisee proposes as a potential Premises.

Fitstop may provide written site selection guidelines and other site selection counseling and assistance. These guidelines may require the franchisee to conduct an evaluation of the demographics of the market area at their own expense. Fitstop will use these factors to determine if the proposed site is suitable for the Franchised Business. In deciding whether to approve a site, Fitstop may consider demographic characteristics, traffic patterns, parking, visibility, competition, zoning restrictions, and the size and appearance of the proposed site.

Fitstop will make reasonable efforts to approve or reject any proposed location within 30 days of receiving all requested materials. If Fitstop determines that an on-site evaluation is necessary, the franchisee must provide a description of the site and evidence that it satisfies Fitstop's site selection guidelines, as well as reimburse Fitstop for the expenses incurred in connection with the evaluation. If Fitstop does not provide specific approval within the 30-day period, the proposed location will be deemed rejected. The franchisee must secure a Premises within six months of signing the Franchise Agreement, or Fitstop has the right to terminate the agreement upon written notice.

Fitstop's approval of a site only means that the site meets the minimum requirements for a typical Franchised Business and does not guarantee any certain level of revenue. The estimated time between signing the Franchise Agreement and opening the Franchised Business is typically between six and 12 months, and the Franchised Business must open no later than 12 months after signing 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.