Does the Fly Fitness agreement survive the termination of the Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
NOW, THEREFORE, for and in consideration of the foregoing and the mutual promises and covenants contained herein, and in further consideration of the Franchise Agreement and the mutual promises and covenants contained therein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1. Definitions
All terms used but not otherwise defined in this Agreement shall have the meanings set forth in the Franchise Agreement. "Termination" of the Franchise Agreement shall include, but shall not be limited to, the voluntary termination, involuntary termination, or natural expiration thereof.
2. Internet Advertising and Telephone Accounts
- 2.1 Interest in Web Sites, Social Media Accounts and Other Electronic Listings. Franchisee may acquire (whether in accordance with or in violation of the Franchise Agreement) during the term of Franchise Agreement, certain right, title, or interest in and to certain domain names, social media accounts, hypertext markup language, uniform resource locator addresses, access to corresponding internet web sites, and the right to hyperlink to certain web sites and listings on various internet search engines (collectively, "Electronic Advertising") related to the Franchised Business or the Marks.
- 2.2 Interest in Telephone Numbers and Listings. Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the "Telephone Listings") related to the Franchised Business or the Marks.
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to the 2024 Fly Fitness Franchise Disclosure Document, the Internet Advertising and Telephone Accounts agreement remains in effect after the termination of the Franchise Agreement. Specifically, upon termination of the Franchise Agreement, the franchisee is obligated to immediately transfer all rights and interests in electronic advertising and telephone listings related to the Fly Fitness brand to the franchisor. This includes domain names, social media accounts, website content, telephone numbers, and directory listings.
This requirement ensures that Fly Fitness maintains control over its brand identity and online presence even after a franchise agreement ends. It prevents former franchisees from using the Fly Fitness name or associated online assets to promote competing businesses or otherwise confuse customers. The franchisee must comply with this transfer immediately upon termination, regardless of whether the termination is voluntary, involuntary, or due to natural expiration of the agreement.
For a prospective Fly Fitness franchisee, this means that any investment made in building a local online presence (e.g., a website or social media page) using the Fly Fitness brand will revert to the franchisor upon termination. Franchisees should factor this into their business planning and understand that they will not retain these digital assets if they leave the Fly Fitness system. This is a common practice in franchising to protect the brand's integrity and consistency across all locations.