For how long does the Fitstop Franchise Agreement remain in effect, assuming no early termination?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
ble to pay your debts as and when they fall due ("Solvency Statement"). You acknowledge that you will be in breach of this Agreement if you fail to provide the Solvency Statement in the time requested.
Section 14: Term and Renewal
- 14.1 Subject to the below, this Agreement and the Franchise and related licenses we grant herein shall be and remain in full force and effect for a period beginning on the Effective Date and ending upon the expiration of the Term, unless a Party terminates this Agreement pursuant to the 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 the franchise and other rights awarded under this Agreement; and
- 14.4.4 Cure any and all defaults, including any monetary defaults, that exist as of the date your request renewal and the date of renewal.
- 14.5 If you continue to operate the Franchise without our express written consent following the expiration of the Term of this Agreement, then such operations shall be considered and legally characterize
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the Franchise Agreement remains in effect from the effective date until the end of the term, unless terminated earlier according to the agreement's terms.
Fitstop may offer the option to renew the franchise for up to two consecutive five-year terms, provided the franchisee is not in default of the agreement and provides written notice between six to twelve months before the end of the current term. To renew, the franchisee must execute Fitstop's current Franchise Agreement, which may differ substantially from the original, sign a general release of claims against Fitstop, pay a renewal fee of $20,000, and cure any existing defaults.
If a Fitstop franchisee continues to operate the franchise after the agreement's term expires without express written consent from Fitstop, it will be considered a month-to-month extension that Fitstop can terminate with 30 days' prior written notice. This arrangement does not guarantee long-term security and is subject to Fitstop's discretion.