Under what conditions will Fitstop not unreasonably withhold consent for relocation?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not relocate the Premises of your Franchised Business without our written consent, which we will not unreasonably withhold provided: (i) the new location is located within your Designated Territory and meets our thencurrent criteria for a System-associated Premises; and (ii) you pay our then-current relocation fee (if any). When considering a request for relocation, we may take into account the desirability of the proposed new location, its distance from other and future-planned franchised locations, the traffic patterns, security, cost, and the demographics of the area, proximity of competition, parking, as well as any other related factors we deem appropriate. These are the same kinds of factors we consider when evaluating your initial Premises.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee needs Fitstop's written consent to relocate their franchised business. Fitstop will not unreasonably withhold this consent if two conditions are met. First, the new location must be within the franchisee's designated territory and meet Fitstop's current criteria for a System-associated Premises. Second, the franchisee must pay Fitstop's then-current relocation fee, if any.
When Fitstop considers a relocation request, they may evaluate several factors. These include the desirability of the new location, its distance from existing and planned franchised locations, traffic patterns, security, cost, and the demographics of the area. Fitstop will also consider the proximity of competition and parking availability. These factors are similar to those Fitstop considers when evaluating the initial premises for the franchise.
This means that while Fitstop permits relocation, it is subject to their approval based on specific criteria. The franchisee bears the responsibility of finding a suitable location within their designated territory that aligns with Fitstop's standards. Additionally, the franchisee must be prepared to pay a relocation fee, the amount of which is not specified in the FDD but should be clarified with Fitstop during the due diligence process. The final decision rests with Fitstop, ensuring that the relocation benefits both the franchisee and the overall Fitstop system.