What costs and expenses is a Fly Fitness franchisee responsible for paying if they breach the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
eipt by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
3. General.
a. Franchisee shall take full responsibility for ensuring that Covenantor acts as required by this Agreement.
- b. Covenantor agrees that in the event of a breach of this Agreement, Franchisor would be irreparably injured and be without an adequate remedy at law. Therefore, in the event of such a breach, or threatened or attempted breach of any of the provisions hereof, Franchisee is obligated to enforce the provisions of this Agreement and shall be entitled, in addition to any other remedies that are made available to it at law or in equity, to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, with
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee is obligated to cover specific costs and expenses if they breach the Franchise Agreement. Fly Fitness indicates that if a franchisee breaches the agreement, Fly Fitness would be irreparably injured and be without an adequate remedy at law. In the event of such a breach, the franchisee is obligated to enforce the provisions of the agreement. Fly Fitness is entitled to a temporary and/or permanent injunction and a decree for the specific performance of the terms of this Agreement, without the necessity of showing actual or threatened harm and without being required to furnish a bond or other security.
Additionally, the franchisee agrees to hold the Fly Fitness indemnitees harmless and will reimburse them as the costs and expenses are incurred. This means the franchisee would be responsible for covering legal fees and other expenses that Fly Fitness incurs as a result of the franchisee's breach.
This clause is fairly standard in franchise agreements, as it aims to protect the franchisor from financial losses resulting from a franchisee's failure to adhere to the terms of the agreement. Prospective franchisees should carefully consider this obligation and ensure they fully understand the terms of the agreement to avoid potential breaches and associated costs.