What are the coverage limits for Employment Practices Liability Insurance that Fitstop franchisees are required to maintain?

According to Fitstop's 2024 Franchise Disclosure Document, franchisees must maintain Employment Practices Liability Insurance with limits of $1,000,000 per occurrence, $1,000,000 per incident, and $1,000,000 in the aggregate.

This type of insurance protects both the franchisee and Fitstop (including its officers and directors) against liability arising from employment-related claims. These claims can include allegations of discrimination, wrongful termination, harassment, and other employment-related issues. The policy ensures that Fitstop receives a 30-day written notice if the policy is canceled, modified, or terminated.

It is important for prospective Fitstop franchisees to understand that these insurance coverage requirements are minimums. Franchisees are responsible for determining if higher coverage amounts or additional types of insurance are necessary for their specific circumstances. Failure to maintain the required insurance coverage constitutes a material breach of the franchise agreement, potentially leading to termination. Fitstop also retains the right to increase the required coverage amounts or require different or additional coverage periodically.