Does the submission of the Fitstop Franchise Agreement constitute an offer to license?

According to Fitstop's 2024 Franchise Disclosure Document, the submission of the Franchise Agreement does not constitute an offer to license a Fitstop franchise. The agreement becomes binding only when fully executed by all of the franchisee's principals and counter-executed by an officer of Fitstop.

This means that a prospective Fitstop franchisee's initial submission of the agreement is simply an expression of interest and intent to enter into a franchise agreement. Fitstop retains the right to reject the application even after the franchisee submits the agreement. The franchisee is not officially granted a license until Fitstop formally approves and signs the agreement.

This clause protects Fitstop by ensuring they are not obligated to grant a franchise simply because an applicant has submitted paperwork. It allows Fitstop to conduct its due diligence and ensure the applicant meets all qualifications before entering into a binding agreement. For the franchisee, it highlights the importance of ensuring all requirements are met and that approval is not guaranteed upon initial submission.