How long does a Fitstop franchisee have to satisfy a final judgment against them before it could lead to termination?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Instructor Training that we will provide remotely or otherwise as we determine appropriate.
- 16.2.13 For any other reason stated in other Sections of this Agreement, which are incorporated herein by reference.
- 16.3 Cure Period and Franchisee's Obligation to Demonstrate Curative Actions. If the breach concerns this Agreement and does not result in immediate termination, the correction of any default must be accomplished within 30 calendar days after we submit notice to you describing the condition which constitutes the violation, and the corrective action which you must take if any corrective action is possible to cure the default. Should a default under this Agreement be of such a nature that we, in writing, agree more than 30 calendar days is reasonably required to cure, you shall be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
Based on the 2024 Fitstop Franchise Disclosure Document, a franchisee typically has 30 calendar days to correct a breach of the agreement after receiving notice from Fitstop. This includes addressing issues that could lead to termination.
Specifically, if a franchisee fails to meet their obligations under the agreement, Fitstop will provide a written notice describing the violation and the necessary corrective actions. The franchisee must then correct the default within this 30-day period. However, if the breach requires more than 30 days to cure, and Fitstop agrees in writing that more time is needed, the franchisee will be granted additional time, provided they begin corrective action promptly within the initial 30-day period and diligently pursue it to completion.
If the franchisee fails to cure the default within the given time frame, Fitstop can terminate the agreement without further notice once the cure period expires. This means that satisfying a final judgment would need to occur within this cure period to avoid termination. It is important for prospective franchisees to understand these conditions and ensure they can meet all obligations to avoid potential default and termination of their Fitstop franchise agreement.