Does the Fly Fitness agreement inure to the benefit of the Franchisor's successors and assigns?

According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement does inure to the benefit of the franchisor's successors and assigns. Specifically, the agreement is binding upon and benefits the successors and assigns of Fly Fitness. This means that if Fly Fitness is acquired or otherwise transfers its rights and obligations, the agreement remains in effect and applies to the new entity.

For a prospective Fly Fitness franchisee, this clause ensures that the terms of the franchise agreement will continue to be honored even if the ownership of the Fly Fitness brand changes. It provides a level of stability and assurance that the franchisee's investment and business operations will not be disrupted by a change in franchisor ownership. The agreement is also personally binding on the developer and their heirs, executors, administrators, and successors or assigns.

However, the agreement stipulates that the developer's interest in the agreement can only be transferred in accordance with Article 6 of the agreement. This indicates that there are specific procedures and conditions that must be met before a franchisee can transfer their rights and obligations to another party. This provision ensures that Fly Fitness maintains control over who becomes a franchisee and that any transfer meets their standards and requirements.

In summary, while the Fly Fitness agreement benefits the franchisor's successors and assigns, franchisees need to be aware of the limitations on their ability to transfer their interest in the agreement. It is important to carefully review Article 6 to understand the specific conditions and procedures for transferring the franchise to ensure compliance and avoid any potential issues.