Is a Fitstop territory exclusive?

According to Fitstop's 2024 Franchise Disclosure Document, a franchisee's territory is not exclusive. While Fitstop grants franchisees a "Designated Territory," the document explicitly states that franchisees may face competition from both company-owned outlets and other Fitstop franchisees. Fitstop also reserves the right to locate System Businesses within Non-Traditional Venues inside a franchisee's Designated Territory. A typical Designated Territory is expected to contain a population of approximately 40,000, but this can vary based on factors like population density and competition.

Fitstop retains several rights within and outside the Designated Territory. These include the right to establish Fitstop franchises outside the Designated Territory, market similar products under different trademarks within or outside the territory, and distribute approved products through alternative channels. Fitstop also reserves the right to operate System Businesses under the Proprietary Marks from captive venues or other non-traditional locations such as academic institutions, military bases, "big box" gyms, hotels and/or airports.

While franchisees can serve customers from outside their territory, they must do so from their approved premises. Franchisees cannot actively solicit customers outside their Designated Territory without prior written consent from Fitstop. These stipulations are important for prospective franchisees to consider, as they highlight the potential for competition and the limitations on expanding their customer base beyond their designated area.

In summary, while Fitstop offers a Designated Territory, the lack of exclusivity and the reserved rights of the franchisor mean that franchisees need to be prepared for competition and should carefully evaluate the market conditions and potential customer base within their territory before investing in a franchise.