If the Fitstop Franchise Disclosure Document, Franchise Agreement, or any related document contains a provision inconsistent with California law, which will control?

According to Fitstop's 2024 Franchise Disclosure Document, if any provision within the Franchise Disclosure Document, the Franchise Agreement, or any related document contradicts California law, the law will take precedence. This means that Fitstop franchisees in California are protected by California's franchise laws, regardless of what the franchise agreement might state.

This protection extends to various aspects of the franchise relationship. For example, California law prohibits Fitstop from disclaiming or denying any representations made to a prospective franchisee, or denying a franchisee's reliance on those representations. It also voids any provision that requires a franchisee to waive rights granted under California's Franchise Investment Law or the Franchise Relations Act. These laws cover areas like termination, transfer, and non-renewal of the franchise agreement.

Several specific clauses commonly found in franchise agreements may not be enforceable in California. These include covenants not to compete that extend beyond the termination of the agreement and indemnification provisions related to punitive damages. Additionally, the Franchise Disclosure Document emphasizes that Fitstop must provide a disclosure document approved by the Department of Financial Protection and Innovation before soliciting any material modifications to the Franchise Agreement.

Prospective Fitstop franchisees in California should carefully review the state-specific addendum to the Franchise Disclosure Document and be aware of their rights under California law. It is advisable to consult with an attorney experienced in franchise law to ensure full understanding of these protections and how they apply to the Fitstop franchise agreement.