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What happens if the Fitstop franchisee or General Manager does not complete all components of the Initial Training Program to Fitstop's satisfaction?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

ion to you through multiple means including through our training.

  • 4.2 You agree to enroll in the training at our headquarters or at such other training center we designate within 14 calendar days of the Effective Date of this Agreement ("Initial Training Program"),

which we will provide to you and up to 2 additional individuals – including any individual you designate to manage the day-to-day operations of the Franchised Buisness (a "General Manager" or "Designated Manager") – without charging any Traiing Fee, provided you and, if applicable, your General Manager attend and complete all components of the Initial Training Program to our satisfaction at the same time prior to (a) the opening your Franchised Business, or (b) otherwise providing the Approved Services and/or Approved Products in any manner.

  • 4.3 If, at any time, you have a change in your Franchise Operator and/or any General Manager in the future, such individual must enroll in, attend and successfully complete the requisite components of the Initial Training Program. We have the right to charge our then-current Training Fee in connection with any training that is provided under this Section.
  • 4.4 You must ensure that any Franchised Business personnel that you wish to provide any kind of fitness training/instruction, classes or any other Approved Services that involve fitness training (each, an "Authorized Instructor") participates in and successfully completes our proprietary training program for such instructors (the "Instructor Training") prior to providing any of such Approved Services at or in connection with the Franchised Business. The Parties agree and acknowledge that: (i) we will provide Instructor Training to up to five (5) prospective Authorized Instructors that you expect will be providing the Approved Services when the Franchised Business opens and commences operation (the "Initial Instructor(s)") tuition-free as part of your Initial Franchise Fee; and (ii) you must ensure that any replacement or new personnel you wish to serve as an Authorized Instructor for the Franchised Business both (a) are noticed to us in writing, and (b) completes the Instructor Training prior to providing any Approved Services in connection with the Franchised Business, which we will provide via our then-current remote training or otherwise and may charge our then-current Training Fee for such Instructor Training.
  • 4.5 If, at any time, you request or we determine that you require any additional training beyond what this Agreement describes herein, we will provide at our then-current training fee (our "Training Fee") for the kind of training or instruction requested by you or required hereunder (collectively, the "Additional Training"), which will be set forth and updated in the Manual(s) from time to time as we determine appropirate.
  • 4.6 We may convene seminars and supplementary trainings for the network of franchisees whenever we reasonably consider it necessary or appropriate. The location, agenda, duration, and all procedures and formats of each seminar and supplementary training are determined by us. You and your General Manager must attend all seminars and supplementary trainings and you are solely responsible for the payment of all fees and costs related to seminars and supplementary trainings.
  • 4.7 We may convene meetings, conferences and annual conventions for franchisees or groups of franchisees. We will determine the location, agenda, duration and all procedures and formats of each meeting, conference and annual convention. We will give you reasonable written notice of meetings, conferences and annual conventions.

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, franchisees and their General Managers must attend and complete all components of the Initial Training Program to Fitstop's satisfaction before opening their franchise or providing approved services/products. The training is provided without a Training Fee for the franchisee and up to two additional individuals, including the General Manager, if completed to Fitstop's satisfaction at the same time. If a franchisee has a change in their Franchise Operator or General Manager in the future, the new individual must enroll in, attend, and successfully complete the required parts of the Initial Training Program. Fitstop retains the right to charge its then-current Training Fee for any training provided under this section.

If the franchisee or their General Manager do not attend the annual convention, an amount equal to their attendance fee will be forfeited, and the franchisee will be in material default of the Franchise Agreement. The franchisee is responsible for all traveling, living, compensation, and other expenses incurred by themselves, their General Manager, and other personnel in connection with the initial training, supplementary training, seminars, meetings, conferences, and annual conventions. None of the fees, expenses, or charges associated with these trainings and events are refundable.

Fitstop also owns all proprietary rights to the information and methodology of their training, which constitutes confidential trade secrets. Franchisees cannot disclose this information to anyone except their employees for operating the franchise, and they cannot reprint or reproduce any training materials. The training methodology and information provided to the franchisee, General Manager, or employees remains Fitstop's property at all times. Failing to ensure fitness training is provided by an Authorized Instructor who meets the criteria in the manuals and completes Fitstop's Instructor Training is also a breach of the agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.