What happens if I fail to keep my Fitstop business entity active and in good standing?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
16.2.9 If you fail to keep your business entity active and in good standing.
16.3 Cure Period and Franchisee's Obligation to Demonstrate Curative Actions. If the breach concerns this Agreement and does not result in immediate termination, the correction of any default must be accomplished within 30 calendar days after we submit notice to you describing the condition which constitutes the violation, and the corrective action which you must take if any corrective action is possible to cure the default.
Should a default under this Agreement be of such a nature that we, in writing, agree more than 30 calendar days is reasonably required to cure, you shall be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion.
- 16.4 Termination Upon Failure to Cure. If a default in this Agreement is not cured after notice and within any time period allowed for the correction of the default, termination of this Agreement will occur without further notice as of the expiration of the time allowed to cure the default.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, failing to maintain your business entity in active and good standing constitutes a breach of the franchise agreement. Fitstop will provide you with a 30-day notice to correct this default. The notice will describe the condition that constitutes the violation and the corrective action you must take to cure the default.
However, if Fitstop agrees in writing that more than 30 days is reasonably required to cure the breach, you will be granted additional time, provided that you commence corrective action promptly within the initial 30-day period and diligently pursue it to completion.
If you fail to cure the default after receiving notice and within the allowed time frame, Fitstop has the right to terminate the franchise agreement without further notice. Termination will occur as of the expiration of the time allowed to cure the default.