If a Fitstop franchisee is 'under the influence' on-site, what are the consequences?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.1.4 If you engage in (a) conduct that reflects materially and unfavorably upon the operation and/or reputation of the Franchise or the Franchise System or Proprietary Marks, or (b) other unfavorable conduct which may include, but is not necessarily limited to: any conviction of you or any of your Franchise Owners in a criminal action; judgments against you or your Franchise Owners in civil actions involving allegations of disrepute; libelliously denegrating us, the Franchise System, or your members; purposefully or negligently failing to pay royalties through inaccurate financial records; violating the non-compete provisions of this Agreement; you or your Franchise Owners being "under the influence" of drugs or alcohol while on-site at the Franchised Business; and/or misusing any of the Propreitary Marks, Confidential Information and/or proprietary System materials.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee or their Franchise Owners are "under the influence" of drugs or alcohol while on-site at the Franchised Business, it can lead to termination of the franchise agreement. This is considered unfavorable conduct that reflects materially and unfavorably upon the operation and/or reputation of the Franchise or the Franchise System or Proprietary Marks.
This clause highlights the importance of maintaining a professional and safe environment at the Fitstop location. Being under the influence on-site is a serious breach of the agreement and can have significant repercussions. The franchisor views such behavior as detrimental to the brand's image and the overall franchise system.
This provision protects Fitstop's brand and reputation by ensuring franchisees and their owners conduct themselves responsibly. It also underscores the need for franchisees to implement policies and practices that prevent such occurrences, as the consequences can include the loss of their franchise.