What is the required notice period for the Franchisor to terminate a month-to-month Fitstop franchise extension?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
- 14.5 If you continue to operate the Franchise without our express written consent following the expiration of the Term of this Agreement, then such operations shall be considered and legally characterized as only a month-by-month extension of this Agreement based on your position as a non-authorized holdover franchisee, which may be terminated by Franchisor at any time upon 30 days' prior written notice.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, if a franchisee continues to operate the Fitstop franchise after the expiration of the original term without express written consent from Fitstop, the operations will be considered a month-to-month extension of the agreement. In this situation, Fitstop can terminate the agreement at any time by providing the franchisee with 30 days' prior written notice.
This means that if a franchisee's original agreement expires and they are operating on a month-to-month basis, Fitstop has the right to terminate the agreement with only 30 days' notice. This is a relatively short notice period, and it's important for franchisees to be aware of this risk if they continue to operate the franchise after the initial term has ended.
For a prospective Fitstop franchisee, this highlights the importance of either renewing the franchise agreement before the end of the term or ensuring there is express written consent from Fitstop to continue operations beyond the original term. Otherwise, the franchisee risks a sudden termination of the agreement with only 30 days' notice, which could significantly impact their business operations and investment.