When does the initial term of the Fitstop Franchise Agreement begin?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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- 2.5 Initial Term. The term of this Agreement shall begin on the date that the Parties fully execute this Agreement (the "Effective Date") and continue for a period of 10 years thereafter (the "Term"), unless terminated by us at an earlier date in accordance with the terms of this Agreement.
2.6 Initial Franchise Fee. You must pay us an initial franchise fee amounting to $50,000 (the "Initial Franchise Fee") immediately upon execution of this Agreement, whic
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the initial term of the Franchise Agreement begins on the date that both parties fully execute the agreement, referred to as the "Effective Date." The term then continues for a period of 10 years, unless Fitstop terminates the agreement earlier according to its terms.
This means that a franchisee's 10-year commitment to Fitstop starts as soon as the agreement is signed by both the franchisee and Fitstop. The "Effective Date" is a critical point, as it triggers various obligations and rights for both parties. The franchisee must pay an initial franchise fee of $50,000 immediately upon execution of the agreement.
It is important for prospective franchisees to understand that this initial franchise fee is deemed fully earned by Fitstop and is non-refundable upon payment. Therefore, a potential franchisee should carefully review and understand all aspects of the Franchise Agreement before signing, as the 10-year term and the non-refundable initial fee are binding from the Effective Date.