What claims by Fly Fitness are not subject to mediation or arbitration?

According to Fly Fitness's 2024 Franchise Disclosure Document, certain claims are explicitly excluded from mandatory mediation or arbitration. These exceptions provide Fly Fitness with avenues to pursue specific legal actions without being bound by the alternative dispute resolution processes outlined in the agreement.

Specifically, Fly Fitness's claims for injunctive or other extraordinary relief are not subject to mediation or arbitration. This allows Fly Fitness to seek immediate court intervention to prevent potential harm, such as halting unauthorized use of their trademarks or trade secrets. Disputes and controversies arising from antitrust laws, such as the Sherman Act and the Clayton Act, are also excluded, enabling Fly Fitness to address anti-competitive practices through the court system. Disputes related to the ownership or validity of Fly Fitness's trademarks (the Marks) under the Lanham Act are also not subject to mediation or arbitration.

Furthermore, Fly Fitness can pursue enforcement of a franchisee's post-termination obligations, including non-competition covenants, directly in court. This is a significant protection for Fly Fitness, ensuring they can swiftly address any franchisee's violation of non-compete agreements after the franchise relationship ends. These exceptions are designed to protect Fly Fitness's brand, competitive position, and ability to enforce critical contractual obligations, providing them with direct access to the courts when necessary.