What notice must the insurer provide to Fitstop prior to cancellation or material changes to a Fitstop franchisee's insurance policy?

According to Fitstop's 2024 Franchise Disclosure Document, Fitstop franchisees must ensure that their insurance policies include a provision requiring the insurer to provide written notice to Fitstop at least 30 calendar days before any cancellations or material changes to the policy. This requirement ensures that Fitstop is informed of any potential lapse in coverage or significant alterations to the insurance terms affecting the franchisee's operation.

This stipulation is important for Fitstop to maintain oversight of its franchisees' compliance with insurance requirements, protecting the brand from potential liabilities. By mandating a 30-day notice, Fitstop has time to ensure the franchisee secures replacement coverage or addresses the material changes to maintain continuous and adequate protection.

For a prospective Fitstop franchisee, this means they need to verify that their insurance policies include this notification provision. They should confirm with their insurance provider that Fitstop will receive direct notification of any policy changes or cancellations. Failure to comply with this requirement could result in Fitstop taking action to secure insurance on behalf of the franchisee, potentially deducting the costs from payments to the franchisee, as detailed elsewhere in the FDD.