What happens if a portion of the Fitstop Franchise Agreement is declared invalid by a court?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 20.5 All references in this Agreement to the singular shall include the plural where applicable.
- 20.6 The numbers and headings of all Sections and Paragraphs used herein are for convenience and do not affect the substance of the Sections and Paragraphs themselves.
- ©2024 Fitstop USA, Inc. 20.7 If any portion of this Agreement is declared by a court of competent jurisdiction to be invalid, illegal, unconstitutional, or unenforceable, such portion shall be deemed severed from this
Agreement and the remaining parts shall remain in full force and effect as if no invalid or unenforceable provisions had been part of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a court declares any part of the Franchise Agreement invalid, illegal, unconstitutional, or unenforceable, that specific part will be removed from the agreement. The rest of the agreement will remain valid and in effect, as if the invalid part never existed. This is a fairly standard 'severability' clause in franchise agreements.
However, Fitstop also retains the right to terminate the entire agreement if any material provision is deemed invalid. This adds a layer of risk for the franchisee. While a minor, unenforceable clause might simply be removed, a key clause being struck down could give Fitstop grounds to end the franchise agreement entirely.
Prospective Fitstop franchisees should carefully consider which provisions of the agreement they deem most critical and understand that the loss of any of these could potentially lead to termination of the franchise. It would be prudent to discuss with Fitstop which provisions they consider 'material' and under what circumstances they would exercise their right to terminate the agreement.