What is the maximum number of consecutive five-year Renewal Terms that Fitstop may offer?
Fitstop Franchise · 2024 FDDAnswer 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 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, a franchisee may have the option to renew their franchise agreement for up to two consecutive five-year terms, provided they meet certain conditions. These five-year terms are referred to as "Renewal Terms" in the agreement.
To be eligible for renewal, the franchisee must provide Fitstop with written notice of their intention to renew the agreement. This notice must be given no less than six months and no more than 12 months before the expiration of the current term. Additionally, the franchisee must not be in default of the existing franchise 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 execute a general release of claims against Fitstop and its affiliates. Furthermore, a renewal fee of $20,000 must be paid, and any existing defaults must be cured. If the franchisee continues to operate the Fitstop franchise after the term expires without written consent from Fitstop, it will be considered a month-to-month extension that Fitstop can terminate with 30 days' notice.