What is the timeframe Fitstop franchisees have to locate and lease a premises within the Designated Territory after the Effective Date?
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 has already been agreed upon, franchisees must use their best efforts to locate and enter into a lease agreement for a premises within their designated territory that Fitstop approves within six months of the effective date of the franchise agreement.
As part of this process, franchisees are responsible for inspecting prospective 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 necessary, engaging an agent Fitstop approves to assist in locating an appropriate premises within the designated territory.
If a franchisee has not located an appropriate premises within the specified timeframe, Fitstop has the discretion to either agree to terminate the agreement or agree to extend the time the franchisee has to locate a premises. This highlights the importance of proactive engagement in the site selection process and open communication with Fitstop to avoid potential termination of the franchise agreement.