factual

Does the agreement to first attempt internal resolution of disputes for Fly Fitness survive termination or expiration of the agreement?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 10.1 Internal Dispute Resolution. Developer shall first bring any claim, controversy or dispute arising out of or relating to this Agreement, the Exhibits and/or Attachments hereto or the relationship created by this Agreement to Franchisor's president and/or chief executive officer for resolution. After providing notice as set forth in Section 12.7 below. Developer must exhaust this internal dispute resolution procedure before Developer may bring Developer's dispute before a third party. This agreement to first attempt resolution of disputes internally shall survive termination or expiration of this Agreement.

Source: Item 23 — RECEIPT (FDD pages 45–182)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement to first attempt internal resolution of disputes survives the termination or expiration of the Franchise Agreement. Specifically, before a Fly Fitness franchisee can bring a dispute before a third party, they must first bring the claim to Fly Fitness's president and/or chief executive officer for resolution.

This internal dispute resolution procedure is a mandatory first step for franchisees. It requires them to attempt to resolve any claims, controversies, or disputes related to the Franchise Agreement internally with Fly Fitness before pursuing any external legal actions. This process aims to facilitate direct communication and potential resolution between the franchisee and the franchisor's leadership.

By requiring internal dispute resolution to survive termination or expiration, Fly Fitness ensures that even after the franchise relationship ends, both parties are committed to attempting to resolve any lingering disputes through internal channels before resorting to more formal and costly legal proceedings. This can potentially save both parties time and money and may lead to more amicable resolutions.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.