Until when will a Fitstop franchisee be afforded territorial rights?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
out this Disclosure Document.
Subject to our reserved rights set forth more fully below in this Item, we will not open or operate, or license any third party a license to own or operate, a System Business that operates under the Proprietary Marks from a premises that is physically located within your Designated Territory. You will be afforded this territorial right until such time that the Franchise Agreement governing the Designated Territory at issue expires or is terminated.
As of the Issue Date, we expect that a typical Designated Territory will contain a population of approximately 40,000. We do not, however, have a minimum geographical area that we must afford to a given System franchisee, and we expect that your Designated Territory will vary from the territory granted to other System Business owners due to variance in the population, demographics, corporate/work population and density, proximity of competitors and/or related historical market saturation information. When analyzing and/or determining your Designated Territory on population, we will use publicly-available data and information published as part of the U.S. Census Bureau or comparable source/organization when analyzing the population and other demographics of the area surrounding your Designated Territory.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee will be afforded territorial rights until the Franchise Agreement expires or is terminated. Fitstop grants franchisees territorial rights within a Designated Territory, meaning Fitstop will not open or operate, or license any third party to open or operate, a System Business that operates under the Proprietary Marks from a premises physically located within the franchisee's Designated Territory.
Fitstop expects a typical Designated Territory to contain a population of approximately 40,000. However, Fitstop does not have a minimum geographical area and expects the Designated Territory to vary due to differences in population, demographics, corporate/work population and density, proximity of competitors, and related historical market saturation information. Fitstop uses publicly available data from the U.S. Census Bureau or a comparable source when analyzing the population and demographics of the area surrounding the Designated Territory.
It is important to note that Fitstop's franchise agreement does not grant exclusive territory. Fitstop reserves the right to locate System Businesses within Non-Traditional Venues, such as academic institutions, military bases, "big box" gyms, hotels and/or airports, even if these are located within a franchisee's Designated Territory. Franchisees may face competition from company-owned or other System franchisees.