Is executing Fitstop's then-current Franchise Agreement a condition of renewal?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
tice and provided that you are not in default of this Agreement, we may provide you with the option to renew the Franchise for for up to two (2) consecutive, five (5) year terms (each, a "Renewal Term").
- 14.4 As a condition of and at the time of any renewal, you must do the following:
- 14.4.1 Execute our then current Franchise Agreement, which may differ substantially from this Agreement under which you have operated, and any other ancillary agreements and documents as we may require;
- 14.4.2 Execute a general release, in a form prescribed by us, of any and all claims against us, our subsidiaries, and our and their respective officers, directors, agents, and employees in their corporate and individual capacities including, without limitation, claims arising under this Agreement and any federal, state, and local laws, rules, and ordinances;
- 14.4.3 Pay us a renewal fee of $20,000 prior to or upon execution of the appropriate renewal form(s) of agreement and/or addendum we, at our option, have the right to require as a precondition to any renewal of t
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, executing the then-current Franchise Agreement is a condition of renewal. Specifically, to renew a Fitstop franchise, a franchisee must execute Fitstop's current Franchise Agreement, which may differ substantially from the original agreement. This requirement ensures that all franchisees operate under the most up-to-date terms and conditions established by Fitstop.
In addition to executing the current Franchise Agreement, the franchisee must also execute a general release of claims against Fitstop and its affiliates. They must also pay a renewal fee of $20,000 and cure any existing defaults, including monetary defaults. These conditions collectively ensure that the franchisee is in good standing and committed to the Fitstop system before being granted a renewal term.
The renewal terms for a Fitstop franchise consist of up to two consecutive five-year terms. To initiate the renewal process, the franchisee must notify Fitstop in writing of their intention to renew at least six months, but no more than 12 months, before the expiration of the current term. Failing to meet these conditions means the franchisee cannot renew their agreement with Fitstop.