What agreement must the transferee execute when taking over a Fly Fitness franchise?

According to Fly Fitness's 2024 Franchise Disclosure Document, a transferee must execute Fly Fitness's then-standard form of Multi-Unit Development Agreement. This agreement may include terms and conditions that differ from the original agreement. The term must be no less than the unexpired term of future development obligations due pursuant to the Mandatory Development Schedule of the original agreement.

This requirement ensures that the new franchisee is bound by the current standards and obligations of Fly Fitness. It also protects Fly Fitness's interests by ensuring the transferee is committed to fulfilling the remaining development schedule. The fact that the terms can be different from the original agreement means a potential buyer needs to fully review the new agreement.

This stipulation is important for potential franchisees looking to sell their Fly Fitness franchise, as it adds a condition to the transfer process. The transferee's willingness to agree to the new Multi-Unit Development Agreement will be a key factor in securing the franchisor's approval for the transfer. Franchisees should be aware of this when considering a sale.