factual

Besides immediate termination, what other violations can lead to Fitstop franchise termination if not cured?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

aw(s), as applicable, subsequently engage in the same noncompliance whether or not such noncompliance is corrected after notice.

  • 16.1.9 If you hack or crack or attempt to hack or crack our computer software.
  • 16.2 Termination Upon Notice and Failure to Cure. In addition to the grounds for immediate termination set forth above, we can terminate this Agreement for the following violations if the violation is not cured within 30 calendar days after we submit to you at the address indicated in the Franchise Summary a notice of violation:
  • 16.2.1 If you fail to pay any fees or other amounts due to us, our affiliates or any Approved Supplier we designate within the time periods specified for such payments by this Agreement, or the agreement specifying the payment concerned, or in any event after receiving written notice that such fees or other amounts are overdue.

  • 16.2.2 If you violate any material term of this Agreement or any other agreement between the Parties including, but not limited to, the Manual(s), lease agreement, or licensing agreement.
  • 16.2.3 If you under report Gross Revenue, your gross billings or sales in any amount in any calendar quarter or year.
  • 16.2.4 If you attempt or purport to transfer or assign all or any part of this Agreement, the Franchise, or any material portion of the real or personal property associated with either, except as provided in this Agreement, or attempt or purport to sub-franchise to a third person or entity, or otherwise to allow an unauthorized third person or entity to use any of the rights, proprietary property, and/or assets franchised or licensed to you hereunder, or any portion of the real and/or personal property used by you in connection herewith.
  • 16.2.5 If you for any reason lose or have suspended any license necessary to run the Franchise.
  • 16.2.6 If you enter a contract with or take payment directly from a member without our approval.
  • 16.2.7 If you fail to submit required financial information or make false statements about your financial condition.
  • 16.2.8 If you fail to pay all taxes and employee related withholdings relating to the operation of your franchise.
    • 16.2.9 If you fail to keep your business entity active and in good standing.
    • 16.2.10 If you misuse or undertake any unauthorized use of our Proprietary Marks.
  • 16.2.11 If you operate the Franchise in a manner that we reasonably believe constitutes a violation of federal, state, or local law.
  • 16.2.12 If you permit any fitness training, classes and/or other instruction to be provided as an Approved Service at or in connection with the Franchised Business by any individual other than an Authorized Instructor that (a) meets all Instructor Criteria set forth in the Manuals, and (b) completes our then-current Instructor Training that we will provide remotely or otherwise as we determine appropriate.
  • 16.2.13 For any other reason stated in other Sections of this Agreement, which are incorporated herein by reference.
  • 16.3 Cure Period and Franchisee's Obligation to Demonstrate Curative Actions. If the breach concerns this Agreement and does not result in immediate termination, the correction of any default must be accomplished within 30 calendar days after we submit notice to you describing the condition which constitutes the violation, and the corrective action which you must take if any corrective action is possible to cure the default.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop can terminate the franchise agreement if certain violations are not cured within 30 calendar days after written notice. These violations include failing to pay fees or other amounts due to Fitstop, its affiliates, or any approved supplier, violating any material term of the agreement or other agreements between the parties, and underreporting gross revenue, gross billings, or sales in any amount in any calendar quarter or year.

Additional violations that could lead to termination if not cured include attempting to transfer or assign the agreement without approval, losing or having a license suspended that is necessary to run the franchise, entering a contract with or taking payment directly from a member without Fitstop's approval, failing to submit required financial information or making false statements about your financial condition, failing to pay all taxes and employee related withholdings relating to the operation of your franchise, and failing to keep your business entity active and in good standing.

Fitstop may grant additional time to cure a default if more than 30 days are reasonably required, provided that corrective action begins promptly within the initial 30-day period and is pursued diligently. If the franchisee fails to cure the default within the given time frame, termination of the agreement will occur without further notice.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.