How much notice will Fitstop give a franchisee before relieving itself of the obligation to purchase insurance on their behalf?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.3 In the event you shall fail to obtain such insurance with such coverages as the federal, state, and local law as well as this Agreement requires, we may, but are not obligated to, purchase said insurance, deducting these amounts from any payments made to you. We may relieve ourself of all obligations with respect to the purchase and administration of such insurance coverage by giving 10 calendar days written notice to you.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee fails to obtain the required insurance coverage, Fitstop has the option, but not the obligation, to purchase the insurance on the franchisee's behalf. Fitstop can deduct the cost of this insurance from any payments it owes to the franchisee.
However, Fitstop can also choose to discontinue this practice. If Fitstop decides to relieve itself of the obligation to purchase and administer the insurance coverage, it will provide the franchisee with 10 calendar days' written notice.
This means a Fitstop franchisee needs to maintain compliant insurance coverage or risk Fitstop stepping in to secure it (and deducting the cost) or potentially losing that safety net with just 10 days' notice. It is the franchisee's responsibility to maintain proper insurance coverage.