What is the timeframe Fitstop franchisees have to locate and lease an approved premises within their designated territory, assuming a location hasn't already been agreed upon?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, if a location for the premises hasn't been agreed upon when the franchise agreement is executed, the franchisee must exert their best efforts to find and secure a lease agreement for a location 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 locations, providing weekly updates to Fitstop about the locations inspected in the previous seven calendar days, considering any potential locations Fitstop suggests, and engaging an agent approved by Fitstop to assist in finding a suitable location, if Fitstop deems it necessary.
If the franchisee fails to locate an appropriate premises within the specified timeframe, Fitstop has the discretion to either agree to terminate the agreement or extend the time the franchisee has to find a suitable premises. This clause highlights the importance of diligent effort and communication with Fitstop during the site selection process. It also underscores the potential risk of termination if a suitable location cannot be found within the initial six-month period, unless an extension is granted.