Is a Fitstop franchisee responsible for ensuring compliance with all federal, state, and local laws affecting the operation of the franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
inished by the acts of a franchisee. Based thereon, the Parties agree that the protection of the Franchise System requires the following:
- 11.4.1 Prior to opening the Franchised Business, you must submit proof of registration with all taxation authorities to which you will be responsible for paying taxes, including submitting a Federal tax identification number, and any state and municipal tax identification numbers you have obtained or shall obtain within the necessary timeframes, all necessary permits, approvals, authorizations and licenses to enable you to properly operate the Franchise in accordance with this Agreement and all federal, state, and local laws, ordinances, and regulations affecting the operations of the Franchise.
- 11.4.2 At your own expense, you shall ensure that you are in compliance with all federal, state, and local laws, ordinances, and regulations affecting the operations of the Franchise.
- 11.4.3 You shall pay all taxes, liens, assessments, costs, expenses, debts, salaries, accounts, liabilities, charges, duties, imposts, premiums, fees, damages, and any and all other outlays or responsibilities involving the payment of money or performance of every other nature incurred in, related to, or resulting in any way from, the construction, maintenance, operation and/or discontinuance of the Franchise, and shall provide proof of such action thereof to us, on request.
- 11.4.4 The Parties agree and understand that you will be at all times an independent contractor under this Agreement and will not, at any time, directly or indirectly, hold yourself out as an agent, servant, employee or joint employee of Franchisor. NOTHING IN THIS AGREEMENT CREATES A PARTNERSHIP, JOINT VENTURE, AGENCY, EMPLOYMENT, JOINT EMPLOYMENT OR FIDUCIARY RELATIONSHIP OF ANY KIND. NEITHER FRANCHISOR NOR FRANCHISEE WILL CONSIDER ANY OF YOUR EMPLOYEES TO BE OUR EMPLOYEES OR JOINT EMPLOYEES.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, franchisees are responsible for compliance with all laws affecting their business. Prior to opening, a Fitstop franchisee must submit proof of registration with all relevant taxation authorities, including federal, state, and municipal tax identification numbers. They must also obtain all necessary permits, approvals, authorizations, and licenses to operate the franchise legally.
Fitstop franchisees are obligated to ensure ongoing compliance with all federal, state, and local laws, ordinances, and regulations that affect the operation of their franchise. This includes paying all applicable taxes, liens, assessments, costs, and other financial responsibilities related to the franchise's construction, maintenance, and operation. Franchisees must also provide proof of these payments to Fitstop upon request.
Furthermore, Fitstop franchisees must comply immediately with all orders, laws, regulations, rules, and directives from federal, state, county, or municipal authorities, including OSHA and other health and safety requirements. They are required to notify Fitstop within 24 hours of any legal developments or government orders affecting the franchise, including the reasons for the orders and the corrective actions taken or planned.