What is the procedure for Fitstop to terminate the agreement if a violation is not cured?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
iven 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.
- 16.5 Post-Termination Obligations. Upon termination of this Agreement for any reason, you shall immediately bring all accounts with us current and stop using any and all of our trade names, the Proprietary Marks, any proprietary software or resulting Member/Customer Information, other Confidential Information and/or trade secrets, patented items, and other commercial property and symbols; shall discontinue the use of any signs, displays, advertising and/or promotional material, and the like, that are unique or distinctive to Franchise System; return to us the Manual(s) and all copies thereof and all other material obtained by you from or through us;
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 cure a default after receiving notice, Fitstop can terminate the franchise agreement without further notice. The termination becomes effective as of the expiration of the time allowed for the franchisee to correct the default.
Fitstop will provide a notice describing the violation and the necessary corrective action. Generally, the franchisee has 30 calendar days to correct the default after receiving this notice. However, if the default requires more than 30 days to cure, Fitstop may grant additional time, provided the franchisee begins corrective action promptly within the initial 30-day period and diligently pursues it to completion.
This means a Fitstop franchisee must act quickly to address any issues identified by Fitstop in a notice of default. Failure to do so within the specified timeframe can lead to termination of the agreement, resulting in the loss of the franchise. The franchisee should maintain open communication with Fitstop during the cure period to ensure compliance and avoid termination.