Are there specific items of equipment that Fitstop is more likely to purchase upon termination of the agreement?

According to Fitstop's 2024 Franchise Disclosure Document, upon termination of the franchise agreement, Fitstop has the option, but not the obligation, to purchase specific assets from the franchisee. These assets include any merchandise on hand or on order, as well as equipment or other tangible items used in the operation of the franchised business, as indicated by Fitstop.

If Fitstop chooses to exercise this option, the purchase price for these items will be based on their net depreciated book value. This means the franchisee will receive a price that reflects the original cost of the items minus any depreciation that has been recorded on the company's books.

This clause provides Fitstop with a degree of control over the assets of a terminated franchise, potentially allowing them to re-utilize these assets in other locations or prevent them from being used in a competing business. For the franchisee, it offers a potential avenue to recoup some investment in the event of termination, although the amount received will likely be less than the original purchase price due to depreciation.