How long after a violation or breach must a Fitstop franchisee notify Fitstop to preserve their claim for damages?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
19.6 Notice Requirement. As a condition precedent to commencing an action for damages or for violation or breach of this Agreement, you must notify us within 60 days after the occurrence of the violation or breach, and failure to timely give such notice shall preclude any claim for damages.
19.7 No Withholding of Payments.
You shall not withhold all or any part of any payment to us or any of our affiliates on the grounds of our alleged nonperformance or as an offset against any amount we or any of our affiliates allegedly may owe you under this Agreement or any related agreements.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must notify Fitstop within 60 days of a violation or breach to preserve their claim for damages. Failure to provide this notice within the specified timeframe will preclude any claim for damages.
This requirement acts as a condition precedent to commencing any action for damages related to a breach of the Franchise Agreement. This means that the franchisee's right to sue for damages is contingent upon providing timely notice to Fitstop. The purpose of this clause is likely to give Fitstop early warning of potential claims, allowing them an opportunity to investigate the issue, take corrective action, or attempt to resolve the dispute before it escalates into litigation.
Such notice requirements are relatively common in franchise agreements, as they provide franchisors with an opportunity to address issues promptly and potentially avoid costly legal battles. Franchisees should be diligent in documenting any potential violations or breaches and ensuring that they provide written notice to Fitstop within the 60-day window to protect their legal rights. This also means that a Fitstop franchisee cannot withhold payments based on alleged nonperformance.