Does the Fly Fitness definition of 'Termination' include the natural expiration of the Franchise Agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, the definition of "Termination" within the agreement includes not only voluntary and involuntary termination but also the natural expiration of the Franchise Agreement. This definition is crucial because it clarifies that all post-termination obligations and procedures apply equally whether the agreement ends due to a breach, mutual consent, or simply the passage of time.

For a prospective Fly Fitness franchisee, this means that upon the agreement's natural expiration, they must immediately cease operating the Franchised Business and discontinue using any Fly Fitness trademarks, logos, or other intellectual property. They must also take necessary actions to de-identify the business premises and cancel any assumed name registrations containing Fly Fitness's marks.

This comprehensive definition ensures that Fly Fitness maintains control over its brand and system standards even after a franchise agreement concludes, regardless of the reason for termination. Franchisees should be aware of these obligations and plan accordingly as the end of their franchise term approaches, including understanding their options for renewal or transfer, and the steps required to wind down their Fly Fitness business if they do not pursue those options.