What happens if the breach of the Fitstop agreement results in immediate termination?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
16.2.4 If you attempt or purport to transfer or assign all or any part of this Agreement, the Franchise, or any material portion of the real or personal property associated with either, except as provided in this Agreement, or attempt or purport to sub-franchise to a third person or entity, or otherwise to allow an unauthorized third person or entity to use any of the rights, proprietary property, and/or assets franchised or licensed to you hereunder, or any portion of the real and/or personal property used by you in connection herewith.
16.2.5 If you for any reason lose or have suspended any license necessary to run the Franchise.
16.2.6 If you enter a contract with or take payment directly from a member without our approval.
16.2.7 If you fail to submit required financial information or make false statements about your financial condition.
16.2.8 If you fail to pay all taxes and employee related withholdings r
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, certain breaches of the franchise agreement can lead to immediate termination. These include hacking or attempting to hack Fitstop's computer software. Additionally, Fitstop can terminate the agreement immediately for reasons stated in other sections of the agreement.
If a breach does not result in immediate termination, Fitstop will provide a notice describing the violation and the necessary corrective action. The franchisee then has 30 calendar days to correct the default. However, if the breach requires more than 30 days to cure, Fitstop may grant additional time, provided that corrective action begins promptly within the initial 30-day period and is pursued diligently to completion.
If the franchisee fails to cure a default within the given time frame, Fitstop can terminate the agreement without further notice upon the expiration of the cure period. This highlights the importance of adhering to the terms of the franchise agreement and taking swift action to rectify any breaches to avoid termination and potential loss of the franchise.