Does the Fly Fitness Developer consent to an injunction prohibiting conduct violating the non-compete terms?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer acknowledges that a violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to Franchisor for which no adequate remedy at law will be available.
Accordingly, Developer hereby consents to the entry of an injunction prohibiting any conduct by Developer in violation of the terms of the covenants not to compete set forth in this Agreement.
- 8.7 No Defense.
Developer expressly agrees that the existence of any claims he or she may have against Franchisor, whether or not arising from this Agreement, shall not constitute a defense to the enforcement by Franchisor of the covenants in this Section.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Developer acknowledges that violating the non-compete covenants would cause immediate and irreparable harm to Fly Fitness, for which there would be no adequate legal remedy. Therefore, the Developer consents to an injunction that prohibits any conduct violating the non-compete terms outlined in the agreement.
This means that if a Fly Fitness Developer violates the non-compete agreement, Fly Fitness can seek a court order (injunction) to immediately stop the Developer's actions. This is a significant protection for Fly Fitness, as it prevents potential damage to the brand and business while a legal case is ongoing.
The agreement also states that any claims the Developer may have against Fly Fitness do not constitute a defense against the enforcement of these non-compete covenants. This reinforces Fly Fitness's ability to enforce the non-compete agreement, regardless of any disputes the Developer might raise. This is a fairly standard practice in franchising, as franchisors need to protect their brand and system from departing franchisees who might try to compete unfairly.