What happens if I fail to pay all taxes and employee-related withholdings relating to the operation of my Fitstop franchise?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
16.2.8 If you fail to pay all taxes and employee related withholdings relating to the operation of your franchise.
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, failure to pay all taxes and employee-related withholdings relating to the operation of your franchise can lead to termination of the franchise agreement. Fitstop will provide a notice of violation, and you will have 30 calendar days to correct the issue.
Fitstop may agree in writing to allow more than 30 calendar days to cure the issue, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion. If the default is not corrected within the given time frame after receiving notice, termination of the Franchise Agreement will occur without further notice.
It is important to note that franchisees are responsible for ensuring compliance with all federal, state, and local laws, ordinances, and regulations affecting the operation of the franchise, including the payment of all taxes and related financial obligations. Additionally, Fitstop requires franchisees to submit proof of registration with all relevant taxation authorities prior to opening the franchised business.