factual

Does the Fly Fitness agreement specify that the Developer's other skills and experience are considered when assessing the reasonableness of the non-compete?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

Developer acknowledges and agrees that the covenants not to compete set forth in this Agreement are fair and reasonable and will not impose any undue hardship on Developer since Developer has other considerable skills, experience and education which afford Developer the opportunity to derive income from other endeavors.

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

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement acknowledges that the Developer's other skills, experience, and education are considered when determining the reasonableness of the non-compete agreement. Specifically, it states that the non-compete will not impose undue hardship on the Developer because they have other considerable skills, experience, and education that allow them to derive income from other endeavors. This suggests that Fly Fitness believes the non-compete is fair because franchisees are not solely reliant on the Fly Fitness business for their livelihood.

This acknowledgement is important for prospective Fly Fitness developers because it indicates that the non-compete restrictions are designed to be reasonable, considering the developer's broader capabilities. However, it's crucial to understand the scope and enforceability of such clauses, as they can vary by jurisdiction. If a court finds the non-compete unreasonable, the agreement provides for a reduction in the time or geographic scope of the restrictions to make them enforceable.

It is fairly common for franchise agreements to include non-compete clauses to protect the franchisor's business model and market share. The inclusion of a statement recognizing the franchisee's other skills and experience may be an attempt to preemptively address potential legal challenges to the enforceability of the non-compete. Prospective developers should carefully review the non-compete provisions with legal counsel to fully understand their rights and obligations.

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.