To which courts do Fly Fitness developers and their principals irrevocably submit themselves?

According to Fly Fitness's 2024 Franchise Disclosure Document, developers and their principals must submit to the jurisdiction of the state and federal courts in Nebraska. This requirement is outlined in Section 10.5, which also specifies that the agreement is made in and substantially performed in Nebraska, and that any claims, controversies, disputes, or actions arising out of the agreement will be governed, enforced, and interpreted under Nebraska law.

This means that if Fly Fitness and a developer have a legal dispute, the case will be heard in Nebraska courts, regardless of where the developer's Fly Fitness franchise is located. The developer also waives any objections to personal jurisdiction, ensuring they cannot argue that the Nebraska courts lack authority over them. This clause aims to provide Fly Fitness and the developer with the mutual benefit of uniform interpretation of the agreement and any disputes arising from it.

For a prospective Fly Fitness developer, this clause is significant because it dictates the legal environment in which any disputes with Fly Fitness will be resolved. While the developer may operate their franchise in another state, they must be prepared to litigate in Nebraska. This could involve additional travel expenses, hiring Nebraska-based legal counsel, and becoming familiar with Nebraska state laws. It is a fairly common practice in franchising to have a governing law and venue clause, as it provides predictability and consistency for the franchisor.

It is important for potential Fly Fitness developers to fully understand the implications of this clause and how it might affect them in the event of a legal dispute. They should consider consulting with an attorney to assess the potential costs and challenges of litigating in Nebraska, as well as to understand their rights and obligations under the franchise agreement.