What is the cure period for non-payment of fees for a Fitstop franchise after written notice?
Fitstop Franchise · 2024 FDDAnswer 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.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee fails to pay any fees or other amounts due to Fitstop, its affiliates, or any approved supplier within the time periods specified, Fitstop can terminate the agreement if the violation is not cured within 30 calendar days after Fitstop submits a notice of violation to the franchisee. This notice will be sent to the address indicated in the Franchise Summary.
This means that if a Fitstop franchisee is late on payments, they will receive a written notice from Fitstop. The franchisee then has 30 calendar days to correct the payment issue. If the franchisee does not cure the non-payment within this 30-day period, Fitstop has the right to terminate the Franchise Agreement.
However, the FDD also states that if the breach concerns the Franchise Agreement and does not result in immediate termination, the correction of any default must be accomplished within 30 calendar days after Fitstop submits notice describing the condition that constitutes the violation and the corrective action that must be taken. If the default is of such a nature that Fitstop agrees in writing that more than 30 calendar days is reasonably required to cure, the franchisee will be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial 30-day period and is pursued diligently to completion.
It is important for a prospective Fitstop franchisee to understand the payment terms and due dates outlined in the Franchise Agreement and any other agreements with Fitstop or its suppliers. Franchisees should also maintain open communication with Fitstop to address any potential payment issues promptly. If a franchisee anticipates difficulty in making a payment, they should immediately contact Fitstop to explore possible solutions and potentially negotiate an extended cure period.