What is the Fly Fitness Developer required to do to protect the Franchisor from liability?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ailing party in such action shall be entitled to recover reasonable attorneys' fees and court costs incurred.
- 10.10 Survival. The provisions of this Article 10 shall continue in full force and effect notwithstanding the expiration or termination of this Agreement or a transfer by Franchisee or any Principal of their respective interests in this Agreement.
11. GENERAL
- 11.1 Independent Licensee. Developer is and shall be an independent licensee under this Agreement, and no partnership shall exist between Developer and Franchisor. This Agreement does not constitute Developer as an agent, legal representative, or employee of Franchisor for any purpose whatsoever, and Developer is not granted any right or authority to assume or create any obligation for or on behalf of, or in the name of, or in any way to bind Franchisor. Developer agrees not to incur or contract any debt or obligation on behalf of Franchisor or commit any act, make any representation, or advertise in any manner which may adversely affect any right of Franchisor or be detrimental to Franchisor or other developers or franchisees of Franchisor. Pursuant to the above, Developer agrees to indemnify Franchisor and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of claims, demands, taxes, costs or judgments against Franchisor arising out of the relationship hereby established which specifically, but not exclusively, includes costs, losses, expenses, attorneys fees relative to assignment or the transfer of right to develop and transactional costs relative thereto, defaults under any leases, subleases, notes, receipt of revenues or any other relationships arising directly or indirectly out of the development and operation of the Fly Fitness outlets.
- 11.2 Successors. This Agreement shall bind and inure to the benefit of the successors and assigns of Franchisor and shall be personally binding on and inure to the benefit of Developer and his or her respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision shall not be construed to allow a transfer of any interest of Developer in this Agreement, except in accordance with Article 6 hereof.
- 11.3 Invalidity of Part of Agreement. Should any provisions in this Agreement, for any reason, be declared invalid, then such provision shall be invalid only to the extent of the
- prohibition without in any way invalidating or altering any other provision of this Agreement.
- 11.4 Entire Agreement. This Agreement, including all attachments, is the entire agreement of the parties, superseding all prior written or oral agreements of the parties concerning the same subject matter, and superseding all prior written or oral representations made to Developer, except the representations made to Developer in Franchisor's Franchise Disclosure Document. No agreement of any kind relating to the matters covered by this Agreement and no amendment of the provisions hereof shall be binding upon either party unless and until the same has been made in writing and executed by all interested parties.
- 11.5 Construction.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Developer has several key responsibilities to protect Fly Fitness from liability. The Developer operates as an independent licensee and must not incur debts or obligations on behalf of Fly Fitness. They are prohibited from acting or advertising in ways that could negatively impact Fly Fitness or its other developers and franchisees.
Specifically, the Developer is required to indemnify Fly Fitness, meaning they must compensate Fly Fitness for any losses, attorney's fees, or damages resulting from claims, demands, taxes, costs, or judgments against Fly Fitness. This indemnification extends to any issues arising from the relationship established by the agreement, including costs related to assignment or transfer of development rights, transactional costs, defaults under leases, revenue receipts, or any other relationships connected to the development and operation of Fly Fitness outlets.
Furthermore, the Developer's indemnification covers claims related to the development, operation, condition, or any part of the Fly Fitness outlets, including aspects of the real estate, products, and the Developer's advertising or business practices. This holds the Developer accountable for actions of their agents or employees that may lead to liability for Fly Fitness. Fly Fitness has the right to appoint independent counsel for any action covered by this indemnity, and the Developer is obligated to reimburse Fly Fitness for all incurred costs and expenses.