Can an arbitrator extend, modify, or suspend any terms of the Fly Fitness agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, an arbitrator does not have the authority to extend, modify, or suspend any terms of the agreement. This limitation is explicitly stated within the section outlining the arbitration process. This ensures that the arbitrator's role is strictly to interpret the existing agreement, not to rewrite or alter its terms.

This restriction is significant for prospective Fly Fitness franchisees because it means that any disputes resolved through arbitration will be based solely on the original terms of the franchise agreement. The arbitrator cannot grant relief that effectively changes the obligations or rights of either party. This provides a level of predictability and stability, as the agreement remains the definitive source of the parties' responsibilities.

For franchisees, this limitation reinforces the importance of carefully reviewing and understanding the franchise agreement before signing. Since an arbitrator cannot modify the agreement, franchisees must ensure they are comfortable with all terms and conditions from the outset. This also highlights the need for thorough due diligence and legal consultation to fully grasp the implications of the agreement. Fly Fitness franchisees should seek clarification from Fly Fitness on any unclear or concerning provisions before entering into the agreement, as the arbitrator's hands are tied when it comes to altering those terms later on.