Under what circumstances may Fitstop revoke approval of a supplier or service or item?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We may re-inspect and/or revoke our approval of a supplier or service or item at any time and for any reason to protect the best interests and goodwill of our System and Proprietary Marks. The revocation of a previously approved product, service or alternative supplier is effective immediately when you receive written notice from us of revocation and, following receipt of our notice, you may not place any new orders for the revoked product, or with the revoked supplier or offer the revoked service.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop has the authority to re-inspect and/or revoke approval of a supplier, service, or item at any time and for any reason. This broad discretion is intended to protect the best interests and goodwill of the Fitstop system and its proprietary marks.
For a prospective franchisee, this means that even after a supplier, service, or item has been approved for use in their Fitstop franchise, that approval can be revoked. The revocation is effective immediately upon the franchisee receiving written notice from Fitstop. Following this notice, the franchisee is prohibited from placing any new orders for the revoked product or with the revoked supplier, or offering the revoked service.
This clause gives Fitstop significant control over the supply chain and service offerings within its franchise system. While it aims to maintain quality and consistency, it also introduces a risk for franchisees. They may need to quickly find alternative suppliers or services if Fitstop revokes an approval, potentially causing disruptions and additional costs. Franchisees should therefore carefully consider the implications of this clause and ensure they have contingency plans in place to manage such situations.