Is there a training program that a transferee of a Fitstop franchise must complete?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
15.12 Conditions for our approval of transfer include, but are not limited to, the following: (1) you are in full compliance with this Agreement; (2) you pay us all amounts due; (3) transferee and its general managers satisfactorily complete our training program, (4) transferee executes our then-current form of Franchise Agreement; (5) the transfer fee is paid; (6) we approve any written agreements regarding transfer; (7) you supply any additional information we require; (8) you provide, as a personal covenant to the transferee, in addition to your covenants to us, an agreement not to seek to divert business from us and our franchisees; and (9) you sign a general release and other documents we require.
15.13 If we do not approve a potential transferee who proposes to take this Franchise as a beneficiary under your will or by intestate succession, your estate may sell the Franchise to a third party transferee who is acceptable to us, provided that the sale and transfer take place within 180 calendar days after the appointment of the executor, administrator, or other personal representative of you, and subject to the terms of transfer herein, including our first right of refusal, which shall apply.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a transferee must complete a training program. Specifically, if you are transferring your Fitstop franchise to another party, the potential transferee and their general managers must satisfactorily complete Fitstop's training program as a condition for approval of the transfer.
This requirement ensures that anyone taking over a Fitstop franchise has the knowledge and skills necessary to maintain the brand's standards and operate the business effectively. This protects the Fitstop brand and the interests of other franchisees in the system.
Additionally, the FDD states that the transferee must execute the then-current Franchise Agreement. The franchisee is responsible for covering training fees associated with additional or remedial training, as outlined in the manuals or in writing.