What is the condition for a Fly Fitness principal's spouse to execute a Guaranty?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor acknowledges that Guarantor is the spouse of Franchisee's Principal, as that term is used in the Franchise Agreement.
Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement to Franchisee, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the monetary obligations and non-competition covenants and agreements of the Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement ("Guaranteed Obligations"). Guarantor shall perform and/or make punctual payment to Franchisor of the Guaranteed Obligations in accordance with the terms of the Franchise Agreement or other applicable document forthwith upon demand by Franchisor.
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. This Guaranty shall not be discharged by renewal of any claims guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, operation of law or otherwise. Presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment and diligence in collecting any obligation under any agreement between Franchisee and Franchisor are each and all waived by Guarantor and/or acknowledged as inapplicable. Guarantor waives notice of amendment of any agreement between Franchisee and Franchisor and notice of demand for payment by Franchisee. Guarantor further agrees to be bound by any and all amendments and changes to any agreement between Franchisee and Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the execution of a Guaranty by the spouse of a Fly Fitness franchisee's principal is a condition for granting the rights outlined in the Franchise Agreement. The franchisor, Fly Fitness, would not grant these rights without the spouse's execution of the Guaranty. This means that if the principal is married, the spouse must agree to be bound by the monetary obligations and non-competition covenants outlined in specific sections of the Franchise Agreement.
The spouse, as the Guarantor, acknowledges they have read the terms and conditions of the Franchise Agreement and that their agreement to the Guaranty is part of what Fly Fitness requires to grant the franchise rights. The Guarantor individually agrees to adhere to all monetary obligations, non-competition rules, and agreements of the franchisee as detailed in the Franchise Agreement. This includes, but is not limited to, the covenants in Sections 19.2, 19.5, 19.6, 19.8, and 19.9 of the Franchise Agreement, which are termed "Guaranteed Obligations."
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. The Guaranty remains in effect regardless of renewals, changes in ownership, or transfers of the Franchise Agreement. The Guarantor also waives certain notices and demands related to the obligations. Essentially, the spouse is taking on a significant legal and financial responsibility, ensuring that Fly Fitness has recourse to enforce the agreement even in various adverse circumstances.