How many days does a Fitstop franchisee have to discharge a levy of execution before it becomes grounds for termination?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.1.6 If the Franchise is seized, taken over, or foreclosed by a government official in the exercise of your duties, or is seized, taken over, or foreclosed by a creditor, lien holder, or lessor of you, provided that final judgment against you remains unsatisfied for 30 calendar days (unless a supersedes bond or other appeal bond has been filed), or a levy of execution has been made upon the Franchise granted by this Agreement or upon a material portion of the property used in the Franchise and the levy is not discharged within five (5) calendar days of the levy.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee has a limited time to resolve a levy of execution before it becomes a cause for termination of the franchise agreement. Specifically, if a levy of execution is made upon the Fitstop franchise or a significant portion of its property, the franchisee has only five calendar days to discharge the levy.
This means the franchisee must take immediate action to resolve the underlying debt or legal issue that led to the levy. Failure to do so within this short timeframe gives Fitstop the right to terminate the franchise agreement. This is a strict requirement, and the franchisee bears the responsibility of ensuring the levy is discharged promptly.
This clause protects Fitstop from potential damage to its brand and reputation that could arise from a franchisee's financial instability or legal troubles. It also ensures that the franchised business remains operational and compliant with legal and financial obligations. Prospective franchisees should be aware of this strict timeline and have plans in place to address any potential levies of execution quickly to avoid termination of their franchise agreement.