Does Fly Fitness assume liability for agreements made by the franchisee that are not expressly authorized?

Based on the 2024 Fly Fitness Franchise Disclosure Document, Fly Fitness does not assume liability for agreements made by the franchisee that are not expressly authorized. Instead, the franchisee agrees to indemnify Fly Fitness Indemnitees, holding them harmless and reimbursing them for costs and expenses incurred. This means the franchisee is responsible for covering any losses, damages, or liabilities arising from unauthorized agreements.

This arrangement protects Fly Fitness from potential legal and financial repercussions resulting from franchisee actions that deviate from the franchise agreement or established standards. It places the onus on the franchisee to ensure all agreements and business practices are within the bounds of their authorized activities. The franchisee must be diligent in understanding the scope of their authority and avoiding unauthorized commitments.

For a prospective Fly Fitness franchisee, this underscores the importance of adhering strictly to the franchise agreement and seeking explicit authorization for any activities or agreements that fall outside the standard operating procedures. Failure to do so could result in the franchisee being held solely responsible for any resulting liabilities, potentially impacting their financial stability. This is a common practice in franchising, where franchisees operate as independent entities and are accountable for their own actions and agreements.