After the Fitstop agreement terminates, how many calendar days must a person be separated from employment with Fitstop or another franchisee before a Fitstop franchisee can hire them without violating the agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.3.2 Without our prior written consent, you shall not employ or seek to employ any person who is at the time employed by us, any of our subsidiaries, or any person who is at the time operating a Franchise or otherwise induce, directly or indirectly, such person to leave such employment.
This paragraph shall not be violated if such person has left the employment of any of the foregoing parties for a period in excess of 180 calendar days;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a Fitstop franchisee is restricted from employing or attempting to employ anyone currently working for Fitstop, its subsidiaries, or another franchisee. This restriction also includes indirectly inducing such individuals to leave their current employment. However, this restriction does not apply if the person has been separated from their previous employment with Fitstop or its related entities for more than 180 calendar days.
This clause protects Fitstop and its franchisees from having their employees poached by other franchisees within the system. It ensures that franchisees invest in their staff without the immediate risk of losing them to a competing Fitstop location.
For a prospective Fitstop franchisee, this means they must wait at least 180 calendar days before hiring someone who was recently employed by Fitstop or another Fitstop franchisee, unless they obtain prior written consent from Fitstop. Failure to comply with this restriction could be a breach of the franchise agreement.