factual

What is the length of each renewal term for a Fitstop franchise?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

terms herein.

  • 14.2 Not less than six (6) months or more than 12 months prior to the expiration of the Term, you must notify us in writing of your intention to renew this Agreement for the Renewal Term.
  • 14.3 Provided you deliver to us the required notice and provided that you are not in default of this Agreement, we may provide you with the option to renew the Franchise for for up to two (2) consecutive, five (5) year terms (each, a "Renewal Term").
    • 14.4 As a condition of and at the time of any renewal, you must do the following:
  • 14.4.1 Execute our then current Franchise Agreement, which may differ substantially from this Agreement under which you have operated, and any other ancillary agreements and documents as we may require;
  • 14.4.2 Execute a general release, in a form prescribed by us, of any and all claims against us, our subsidiaries, and our and their respective officers, directors, agents, and employees in their corporate and individual capacities including, without limitation, claims arising under this Agreement and any federal, state, and local laws, rules, and ordinances;
  • 14.4.3 Pay us a renewal fee of $20,000 prior to or upon execution of the appropriate renewal form(s) of agreement and/or addendum we, at our option, have the right to require as a precondition to any renewal of t

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

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, a franchisee can renew their franchise agreement for up to two consecutive terms. Each of these renewal terms is five years.

To be eligible for renewal, the franchisee must provide written notice to Fitstop between six and twelve months before the current term expires. The franchisee must not be in default of the agreement at the time of renewal.

As a condition of renewal, the franchisee must execute Fitstop's then-current Franchise Agreement, which may differ substantially from the original agreement. The franchisee must also sign a general release of claims against Fitstop and its affiliates, pay a renewal fee of $20,000, and cure any existing defaults.

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.