What are some examples of unfavorable conduct that could lead to termination of the Fitstop franchise agreement?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
not unreasonable under the facts and circumstances for us to conclude that you do not intend to continue to operate the Franchise, unless such failure is due to fire, flood, earthquake, or other force majeure.
- 16.1.3 If you have made any material misrepresentation relating to the acquisition of the Franchise or other rights awarded hereunder.
- 16.1.4 If you engage in (a) conduct that reflects materially and unfavorably upon the operation and/or reputation of the Franchise or the Franchise System or Proprietary Marks, or (b) other unfavorable conduct which may include, but is not necessarily limited to: any conviction of you or any of your Franchise Owners in a criminal action; judgments against you or your Franchise Owners in civil actions involving allegations of disrepute; libelliously denegrating us, the Franchise System, or your members; purposefully or negligently failing to pay royalties through inaccurate financial records; violating the non-compete provisions of this Agreement; you or your Franchise Owners being "under the influence" of drugs or alcohol while on-site at the Franchised Business; and/or misusing any of the Propreitary Marks, Confidential Information and/or proprietary System materials.
- 16.1.5 If you fail, for a period of 10 calendar days after notification of noncompliance, to comply with any federal, state, or local law or regulation applicable to the operation of the Franchise.
- 16.1.6 If the Franchise is seized, taken over, or foreclosed by a government official in the exercise of your duties, or is seized, taken over, or foreclosed by a creditor, lien holder, or lessor of you, provided that final judgment against you remains unsatisfied for 30 calendar days (unless a supersedes bond or other appeal bond has been filed), or a levy of execution has been made upon the Franchise granted by this Agreement or upon a material portion of the property used in the Franchise and the levy is not discharged within five (5) calendar days of the levy.
- 16.1.7 If we make a reasonable determination that continued operation of the Franchise by you will result in an imminent danger to public health or safety.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, there are several actions considered 'unfavorable conduct' that could lead to the termination of the franchise agreement. These include making any material misrepresentation relating to the acquisition of the Franchise.
Other examples of unfavorable conduct include any action that reflects materially and unfavorably upon the operation and/or reputation of the Franchise or the Franchise System or Proprietary Marks. This also includes any conviction of you or any of your Franchise Owners in a criminal action; judgments against you or your Franchise Owners in civil actions involving allegations of disrepute; libellously denegrating us, the Franchise System, or your members; purposefully or negligently failing to pay royalties through inaccurate financial records; violating the non-compete provisions of this Agreement; you or your Franchise Owners being "under the influence" of drugs or alcohol while on-site at the Franchised Business; and/or misusing any of the Proprietary Marks, Confidential Information and/or proprietary System materials.
Further grounds for termination exist if the franchisee fails to comply with any applicable federal, state, or local law or regulation within 10 calendar days after notification of noncompliance. Additionally, Fitstop may terminate the agreement if the franchise is seized or foreclosed by a government official or a creditor, and the judgment remains unsatisfied for 30 calendar days, or if a levy is not discharged within five calendar days. Fitstop also has the right to terminate the agreement if they reasonably determine that the continued operation of the Franchise by you will result in an imminent danger to public health or safety. Hacking or attempting to hack Fitstop's computer software is also grounds for termination.