Under what conditions is the Fitstop Franchise Agreement not binding on Fitstop USA, Inc.?

According to Fitstop's 2024 Franchise Disclosure Document, the Franchise Agreement is not binding on Fitstop USA, Inc. under specific circumstances related to its execution and certain types of transfers. The agreement must be fully executed by all of the franchisee's principals and counter-executed by an officer of Fitstop for it to be binding. This means that until these signatures are in place, Fitstop is not obligated under the terms of the agreement.

Additionally, involuntary transfers of the Franchise Agreement or the assets of the franchise, such as those occurring through legal processes, are not permitted and do not bind Fitstop. These types of transfers can also serve as grounds for terminating the agreement. This provision protects Fitstop from being bound by transfers it has not approved and ensures they maintain control over who operates a Fitstop franchise.

These stipulations are important for potential franchisees to understand. The execution requirement ensures that both parties are in complete agreement before the franchise begins. The restrictions on involuntary transfers protect the Fitstop system and brand by preventing unauthorized or undesirable parties from taking control of a franchise location. Franchisees should be aware that failing to adhere to these conditions could result in the agreement being unenforceable against Fitstop or even lead to termination of the franchise agreement.