How much advance written notice of cancellation, modification, or termination of insurance policies must be provided to Fitstop?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
These policies will insure both you and us and our officers and directors and nominees as additional insureds against any liability which may accrue by reason of your ownership, maintenance or operation of the franchise business wherever it may be located. These policies will stipulate that we will receive a 30-day written notice of cancellation, modification or termination. Original or duplicate copies of all insurance policies, certificates of insurance, or other proof of insurance acceptable to us must be furnished to us together with proof of payment within 30 days of issuance. These insurance coverage requirements are only minimums. You need to make an independent determination as to whether increased amounts or additional types of insurance are appropriate.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–23)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop requires a 30-day written notice of cancellation, modification, or termination of the insurance policies. These policies must insure both the franchisee and Fitstop, including its officers, directors, and nominees, as additional insureds against any liability related to the franchise business's ownership, maintenance, or operation.
The franchisee is responsible for providing Fitstop with original or duplicate copies of all insurance policies, certificates of insurance, or other acceptable proof of insurance, along with proof of payment, within 30 days of issuance. These insurance coverage requirements are minimums, and Fitstop advises franchisees to independently determine if increased amounts or additional types of insurance are necessary.
Failure to obtain and maintain the required insurance constitutes a material breach of the franchise agreement, potentially leading to termination. Fitstop retains the right to obtain the necessary insurance at the franchisee's expense if the franchisee fails to do so. Fitstop may also periodically increase the required coverage amounts or require different or additional coverage. This ensures that both the franchisee and Fitstop are adequately protected against potential liabilities.