What is my obligation as a Fitstop franchisee to demonstrate curative actions after a breach notice?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.3 Cure Period and Franchisee's Obligation to Demonstrate Curative Actions. If the breach concerns this Agreement and does not result in immediate termination, the correction of any default must be accomplished within 30 calendar days after we submit notice to you describing the condition which constitutes the violation, and the corrective action which you must take if any corrective action is possible to cure the default.
Should a default under this Agreement be of such a nature that we, in writing, agree more than 30 calendar days is reasonably required to cure, you shall be given such additional time as may be reasonable, provided that corrective action is commenced promptly within the initial thirty (30) day period and is pursued diligently to completion.
- 16.4 Termination Upon Failure to Cure. If a default in this Agreement is not cured after notice and within any time period allowed for the correction of the default, termination of this Agreement will occur without further notice as of the expiration of the time allowed to cure the default.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if you breach the Franchise Agreement, you have a specific period to correct the issue after receiving a notice from Fitstop. Generally, you must correct the default within 30 calendar days after Fitstop sends you a notice describing the violation and the required corrective action. This notice will outline what you need to do to fix the problem.
However, if the breach requires more than 30 days to cure, Fitstop may agree in writing to give you additional time. To qualify for this extension, you must start taking corrective action promptly within the initial 30-day period and diligently continue until the issue is resolved. This means you can't simply acknowledge the problem; you need to actively work towards fixing it within the given timeframe and continue until it's fully resolved.
If you fail to cure the default within the specified time frame, including any extensions granted by Fitstop, the Franchise Agreement will be terminated without further notice. Termination will be effective as soon as the time allowed to cure the default expires. Therefore, it is crucial to take any breach notice seriously and act quickly to demonstrate that you are taking the necessary steps to correct the issue and maintain your Fitstop franchise.