In the Fly Fitness agreement, what happens to obligations that contemplate performance after the agreement's expiration?

According to Fly Fitness's 2024 Franchise Disclosure Document, any obligation of the developer (franchisee) that requires performance even after the termination, expiration, or transfer of the agreement will continue to be in effect. This is a standard clause in franchise agreements to protect the franchisor's interests beyond the agreement term.

This "survival" clause ensures that certain responsibilities, such as maintaining confidentiality or fulfilling financial obligations, do not simply disappear when the franchise agreement ends. For a prospective Fly Fitness franchisee, this means carefully reviewing the agreement to understand which obligations extend beyond the franchise term.

For example, non-compete agreements often survive the termination of the franchise agreement. This means that even after the agreement ends, the franchisee may be restricted from opening a similar business within a certain geographic area for a specified time. Similarly, obligations to protect confidential information about Fly Fitness's business practices and trade secrets would likely continue even after the franchise agreement is no longer in effect.

It is important for potential Fly Fitness franchisees to fully understand these surviving obligations before entering into the agreement, as they can have significant implications for their future business activities and financial responsibilities.