During the term of the Fitstop agreement, can a franchisee become a landlord for a business similar to the Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.2 You shall diligently and fully exploit the rights granted in this Franchise by personally devoting full time and best efforts and, in the case that more than one individual has executed this Franchise as the franchisee, then you shall personally devote full time and best efforts to the operation of the Franchise.You shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, the franchisee must keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business. This suggests that becoming a landlord for a business similar to Fitstop could be seen as a conflict of interest.
Fitstop requires franchisees to devote full time and best efforts to the operation of the franchise. Engaging in activities such as being a landlord for a similar business could potentially detract from the franchisee's ability to fully dedicate themselves to the Fitstop business.
While the FDD does not explicitly prohibit a franchisee from becoming a landlord for a similar business, Fitstop retains the right to enforce the terms of the agreement and protect its interests. A prospective franchisee should seek clarification from Fitstop regarding whether such an activity would be considered a breach of the agreement.