What is the timeframe, from the Effective Date, that a Fitstop franchisee has to locate and enter into a lease agreement for an approved premises?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
9.1 Obligation to Secure an Approved Premises
- 9.1.1 Unless we have already agreed upon a location for the Premises at the time we execute this Agreement, you must use your best efforts to locate and enter into a lease agreement for a Premises within the Designated Territory that we approve within six (6) months of the Effective Date. As part of that process, it is your responsibility to: (i) inspect prospective premises; (ii) report back to us on a weekly basis with details of the prospective premises inspected in the prior seven (7) calendar days; (iii) consider any potential premises we may suggest; and (iv) if we deem necessary, engage an agent we approve to assist you in locating an appropriate premises within the Designated Territory.
- 9.1.2 If you have not located an appropriate premises by the time specified above, we may in our discretion (i) agree to terminate this Agreement or (ii) agree to extend the time you have to locate an appropriate premises.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, unless a location is already agreed upon when the Franchise Agreement is executed, a franchisee must use their best efforts to locate and secure a lease for a premises within their designated territory that Fitstop approves. This must be done within six months of the Effective Date of the agreement.
As part of this process, the franchisee is responsible for inspecting potential premises, reporting back to Fitstop weekly with details of the premises inspected in the prior seven calendar days, considering any potential premises Fitstop may suggest, and, if Fitstop deems it necessary, engaging an agent Fitstop approves to assist in locating an appropriate premises within the Designated Territory.
If the franchisee fails to locate an appropriate premises within the specified timeframe, Fitstop has the discretion to either terminate the agreement or extend the time allowed for the franchisee to find a suitable location. This highlights the importance of diligently searching for and securing an approved location within the initial six-month period to avoid potential termination of the agreement or the need to request an extension.