Is a Fitstop franchisee required to procure and pay for all other insurance required by state or federal law?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
If you fail to obtain insurance and keep the same in full force and effect, we may obtain this insurance at our discretion, and you will pay us the premium costs upon our demand. Failure to obtain and maintain the required insurance constitutes a material breach of the franchise agreement entitling us to terminate the agreement. You must also procure and pay for all other insurance required by state or federal law.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are responsible for obtaining and paying for all insurance required by state or federal law. In addition to these legally mandated insurances, Fitstop also requires franchisees to maintain minimum insurance coverage levels.
Fitstop has the right to procure insurance on behalf of the franchisee if the franchisee fails to do so, and the franchisee is responsible for reimbursing Fitstop for the premium costs. Failure to maintain the required insurance is considered a material breach of the franchise agreement, which could lead to termination of the agreement.
This requirement ensures that Fitstop franchisees operate in compliance with all applicable laws and regulations, and that both the franchisee and Fitstop are protected from potential liabilities. Prospective franchisees should factor in the costs of these insurance policies when evaluating the financial feasibility of the franchise.