What are the consequences if a Fitstop franchisee does not make timely payments to Approved Suppliers?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees must ensure timely payments to Approved Suppliers for Required Items, consistent with the supplier's invoicing terms. Failure to do so can lead to termination of the Franchise Agreement.
Specifically, Fitstop can terminate the Franchise Agreement if the franchisee fails to pay any fees or other amounts due to Fitstop, its affiliates, or any designated Approved Supplier within the specified time periods. This includes situations where the franchisee receives written notice that such fees or other amounts are overdue and still fails to make the payment within 30 calendar days.
This clause underscores the importance of maintaining good financial standing with Fitstop and its Approved Suppliers. Franchisees should establish clear payment schedules and ensure sufficient funds are available to meet these obligations to avoid potential termination of their agreement.