Until what point can Fitstop rely on the authority of the Franchise Operator?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.3 You acknowledge that neither we nor anyone purporting to act for us has made any promises or representations concerning the sales volumes which your Franchise will produce, the profits you will make, your likelihood of success, or any other matter in connection with the proposed Franchise other than those which the Parties set forth in this Agreement and any signed amendments or exhibits or schedules hereto. If we or any of our agents have made such promises, you must ensure that they are set forth in writing in this Agreement or in an amendment, schedule, or exhibit to this Agreement and that we and you sign any such amendment or exhibit. We, in granting this Franchise, are relying on you to see that the Parties reduce to writing all such matters and attach the documentation that describes those representations to this Agreement and to which you considered material to your solicitation. If you do not reduce such representations to writing and attach those documents to this Agreement, you agree that you will not be able to rely in any way on such promises or representations and we will not be bound by them. YOU MUST ENSURE THAT ALL PROMISES AND REPRESENTATIONS FOR PRESENT AND FUTURE RESULTS AND RIGHTS, WHETHER ABSOLUTE OR CONTINGENT, ARE CONTAINED IN THE FRANCHISE AGREEMENT OR THEY MAY BE FOREVER LOST.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the franchise agreement outlines the representations and acknowledgments made by the franchisee to Fitstop. Specifically, the franchisee acknowledges that Fitstop is relying on the franchisee to ensure all promises and representations are documented in the franchise agreement.
Fitstop emphasizes that if any promises or representations regarding sales volumes, profits, or likelihood of success are made, they must be set forth in writing within the agreement or its amendments, schedules, or exhibits. Both parties must sign these documents to ensure their validity. Fitstop explicitly states that it relies on the franchisee to ensure all such matters are documented and attached to the agreement.
The document makes it clear that if the franchisee fails to reduce such representations to writing and attach them to the agreement, they cannot rely on those promises or representations, and Fitstop will not be bound by them. This places the onus on the franchisee to ensure all critical aspects of the agreement are documented to avoid potential future disputes.
In essence, Fitstop is protected from reliance on any claims or promises not explicitly written into the franchise agreement. The franchisee bears the responsibility to ensure all representations they consider material are documented within the agreement to be enforceable.