Under what circumstances are Fitstop franchisees considered to be in non-curable default?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
| h. "Cause" defined—non-curable defaults | Section 16.1 | Non-curable defaults include being convicted of, pleading guilty or no contest to, or receiving deferred adjudication for a felony, crime of moral turpitude, or certain other crimes; attempts to hack or crack our computer software; disclosure of confidential information; abandonment; unauthorized transfer; material misrepresentations when you purchase the franchise; repeated failure to comply with Franchise Agreement or Manual requirements, even if corrected; or if you are declared insolvent or bankrupt. |
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Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–47)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a franchisee can be in non-curable default under several specific conditions. These defaults, as outlined in Section 16.1 of the Franchise Agreement, do not offer an opportunity for the franchisee to correct the issue.
These non-curable defaults include being convicted of, pleading guilty or no contest to, or receiving deferred adjudication for a felony, a crime involving moral turpitude, or certain other crimes. Further non-curable defaults involve attempts to hack or crack Fitstop's computer software, disclosing confidential information, abandoning the franchise, or engaging in an unauthorized transfer of the franchise.
Additionally, Fitstop considers material misrepresentations made during the franchise purchase, repeated failures to comply with the Franchise Agreement or Manual requirements (even if corrected), and being declared insolvent or bankrupt as non-curable defaults. These stipulations are important for potential franchisees to understand, as any of these events could lead to immediate termination of the franchise agreement without an opportunity to rectify the situation.