What is the consequence if a Fitstop franchisee engages in activities detrimental to the business?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
21.2 You shall diligently and fully exploit the rights granted in this Franchise by personally devoting full time and best efforts and, in the case that more than one individual has executed this Franchise as the franchisee, then you shall personally devote full time and best efforts to the operation of the Franchise.You shall keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
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.
Should a default under this Agreement be of such a nature that we, in writing, agree more than 30 calendar days is reasonably required to cure, you shall be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion.
- 16.4 Termination Upon Failure to Cure. If a default in this Agreement is not cured after notice and within any time period allowed for the correction of the default, termination of this Agreement will occur without further notice as of the expiration of the time allowed 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, franchisees must avoid activities that could harm the business. Specifically, franchisees must keep free from conflicting enterprises or any other activities which would be detrimental to or interfere with the business.
Fitstop emphasizes the importance of franchisees dedicating their full time and best efforts to the operation of the franchise. If more than one individual is listed as the franchisee, each individual must devote their full time and best efforts to the business. This requirement ensures that the franchise receives the necessary attention and commitment to succeed.
Failure to comply with these requirements could lead to termination of the franchise agreement if the franchisee does not correct the issue within a specified cure period. Fitstop will provide notice describing the violation and the necessary corrective action, with a standard cure period of 30 calendar days. However, if the breach is of such a nature that Fitstop agrees more than 30 calendar days is reasonably required to cure, the franchisee shall be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion. If the default is not cured within the allowed time, termination of the agreement will occur without further notice.