Does the Fly Fitness agreement acknowledge that the covenants will impose undue hardship on the covenantor?

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement explicitly states that the covenants not to compete are considered fair and reasonable and will not impose undue hardship on the franchisee or its principals. The agreement suggests that franchisees and principals possess other skills, experience, and education that allow them to derive income from other endeavors. This indicates that Fly Fitness believes franchisees have opportunities outside of the franchise system to earn a living.

However, the agreement also includes provisions to mitigate potential unreasonableness. If a court finds the time period or geographic scope of the non-compete to be unreasonable, the agreement stipulates that these restrictions will be reduced to a level deemed reasonable by the court. Additionally, Fly Fitness retains the right to reduce the scope of any covenant at its discretion, providing further flexibility.

Fly Fitness also emphasizes the potential for irreparable harm to the brand if these covenants are violated. The agreement states that any breach of the non-compete terms would cause immediate and irreparable injury to Fly Fitness, for which monetary damages would not be an adequate remedy. Therefore, franchisees and principals consent to injunctive relief, which means a court order could prohibit them from engaging in any conduct that violates the non-compete terms. This underscores the importance Fly Fitness places on protecting its business interests and goodwill through these restrictive covenants.