factual

What is the notification timeframe required to inform Fitstop of the franchisee's intention to renew the Franchise Agreement?

Fitstop Franchise · 2024 FDD

Answer from 2024 FDD Document

hall be and remain in full force and effect for a period beginning on the Effective Date and ending upon the expiration of the Term, unless a Party terminates this Agreement pursuant to the 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 t

Source: Item 23 — RECEIPTS (FDD pages 50–135)

What This Means (2024 FDD)

According to Fitstop's 2024 Franchise Disclosure Document, a franchisee must provide written notice to Fitstop regarding their intention to renew the Franchise Agreement. This notification must be given no less than six months and no more than 12 months before the expiration of the current term.

To renew the Fitstop franchise, the franchisee must not be in default of the agreement and must provide the required notice within the specified timeframe. If these conditions are met, Fitstop may offer the franchisee the option to renew the franchise for up to two consecutive five-year terms.

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 all claims against Fitstop and its affiliates, pay a renewal fee of $20,000, and cure any existing defaults, including monetary defaults.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.