What are the potential consequences of a Fitstop franchisee's failure to attend the annual convention (Item 6), and how does this failure impact their relationship with the franchisor?

According to Fitstop's 2024 Franchise Disclosure Document, attendance at the annual convention is important, and failure to attend carries specific consequences. If a Fitstop franchisee or their General Manager does not attend the annual convention, the franchisee will forfeit an amount equal to the attendance fee. Furthermore, this failure to attend constitutes a material default of the Franchise Agreement.

This requirement underscores the importance Fitstop places on franchisees staying connected with the brand, learning about system updates, and engaging with other franchisees. The annual convention serves as a key venue for these activities, and Fitstop uses mandatory attendance as a way to ensure franchisees remain actively involved in the Fitstop system.

The financial penalty (forfeiture of the attendance fee) and the declaration of 'material default' highlight the seriousness of non-attendance. A 'material default' can trigger further actions by Fitstop, potentially including termination of the franchise agreement if the default is not cured. Therefore, prospective Fitstop franchisees should factor the cost and time commitment of the annual convention into their business planning and be prepared to attend each year to remain in good standing with the franchisor.