Under what circumstances related to operation failure can Fitstop terminate the franchise agreement immediately?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
16.1.9 If you hack or crack or attempt to hack or crack our computer software.
16.2 Termination Upon Notice and Failure to Cure. In addition to the grounds for immediate termination set forth above, we can terminate this Agreement for the following violations if the violation is not cured within 30 calendar days after we submit to you at the address indicated in the Franchise Summary a notice of violation:
16.2.8 If you fail to pay all taxes and employee related withholdings relating to the operation of your franchise.
16.2.9 If you fail to keep your business entity active and in good standing.
16.2.10 If you misuse or undertake any unauthorized use of our Proprietary Marks.
16.2.11 If you operate the Franchise in a manner that we reasonably believe constitutes a violation of federal, state, or local law.
16.2.12 If you permit any fitness training, classes and/or other instruction to be provided as an Approved Service at or in connection with the Franchised Business by any individual other than an Authorized Instructor that (a) meets all Instructor Criteria set forth in the Manuals, and (b) completes our then-current Instructor Training that we will provide remotely or otherwise as we determine appropriate.
16.2.13 For any other reason stated in other Sections of this Agreement, which are incorporated herein by reference.
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, there are specific circumstances that could lead to immediate termination of the franchise agreement. Fitstop can terminate the agreement immediately if a franchisee hacks or attempts to hack Fitstop's computer software.
Additionally, Fitstop can terminate the franchise agreement if the franchisee fails to pay taxes and employee-related withholdings, fails to keep their business entity active and in good standing, misuses Fitstop's proprietary marks, operates the franchise in a way that violates federal, state, or local law, or allows unauthorized instructors to provide fitness training or classes.
It is important to note that Fitstop also has the right to terminate the agreement for any other reason stated in other sections of the agreement. If a franchisee fails to cure a breach of the agreement after receiving notice, Fitstop can terminate the agreement without further notice.