What constitutes a 'Transfer' requiring Fly Fitness's consent?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval.
Franchisor may void any transfer made without such approval.
- 16.3.
Transfers by Franchisee.
Franchisee shall not directly or indirectly sell, assign, transfer, give, devise, convey or encumber this Agreement or any right or interest herein or hereunder (a "Transfer"), the Franchise, the Franchised Business, or any assets thereof (except in the ordinary course of business) or suffer or permit any such assignment, transfer, or encumbrance to occur by operation of law unless it first obtains the written consent of Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a 'Transfer' encompasses a broad range of actions related to the franchise agreement, the franchise itself, the franchised business, or its assets. Fly Fitness requires prior written consent for any such transfer. This requirement is based on the franchisor's reliance on the franchisee's personal and business capabilities when entering into the agreement.
The franchise agreement specifies that a franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the agreement itself, any rights or interests within it, the franchise, the franchised business, or any of its assets. This restriction applies unless the franchisee first obtains written consent from Fly Fitness. The only exception to this rule is the sale of assets in the ordinary course of business.
Fly Fitness retains the right to void any transfer made without its prior approval. This provision underscores the importance Fly Fitness places on controlling who operates its franchises and ensures that any new operator meets their standards. Prospective franchisees should carefully consider these restrictions and the process for obtaining franchisor approval before entering into a franchise agreement with Fly Fitness.