What are the three geographic boundaries that define the non-compete zone for a Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.2 Territorial Rights within Designated Territory; Related Rights and Limitations. During the term of this Agreement, we will not open or operate, or license any third party the right to open or operate, another System Business under the Proprietary Marks from a physical location within the Designated Territory.
The territorial rights in this Section 2.2 shall be subject to our reserved rights detailed below in this Section.
You may accept business and inquiries from prospective and existing members and customers (each, a "Member") via your Franchised Business, provided you: (i) only provide the Approved Services and Approved Products at and from the Premises, unless we agree otherwise in a separately-signed agreement; and (ii) do not market the Franchised Business or otherwise solicit any potential customers or members outside of your Designated Territory.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, the agreement outlines specific territorial rights and limitations but does not explicitly define three geographic boundaries for a non-compete zone. Instead, it focuses on the franchisee's designated territory and restrictions on marketing outside of it.
According to the FDD, Fitstop will not open or license another System Business under its Proprietary Marks from a physical location within the franchisee's Designated Territory during the agreement's term. This clause protects the franchisee from direct competition from other Fitstop locations within their designated area. However, the franchisee is restricted to providing services and products from the approved Premises and is not allowed to market or solicit customers outside of their Designated Territory.
While the FDD excerpt does not specify geographic boundaries for a non-compete zone, it does mention restrictions related to the Designated Territory and Premises. A prospective franchisee should seek clarification from Fitstop regarding the specific geographic limitations of the non-compete agreement, including any areas outside the Designated Territory where competition is restricted, and how these restrictions apply both during the franchise term and after termination or expiration of the agreement.