What documents is a Fly Fitness franchisee allowed to retain copies of after termination?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
18.1.1. immediately cease to operate the Franchised Business, and shall not thereafter, directly, or indirectly identify himself, herself or itself as a Fly Fitness owner, franchisee, or licensee;
18.1.2. immediately and permanently (i) cease to use the Marks, any imitation of any Mark, logos, copyrighted material, or other Intellectual Property, Confidential Information, other confidential or proprietary material or indicia of a Fly Fitness outlet, (ii) cease to use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Franchisor's affiliates, or the System and (iii) de-identify the Franchised Business premises.
In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms, and any other articles, which display the Marks;
18.1.3. take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
18.1.4. promptly pay all sums owing to Franchisor and its affiliates.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
The 2024 Fly Fitness Franchise Disclosure Document does not explicitly state which documents a franchisee is allowed to retain after termination. However, it does state that upon termination or expiration of the Franchise Agreement, the franchisee must cease using all of Fly Fitness's intellectual property, confidential information, and trademarks. The franchisee must also de-identify the franchised business premises and take action to cancel any assumed name registrations that contain Fly Fitness's marks.
Furthermore, the franchisee is obligated to surrender any material containing confidential information to Fly Fitness upon request or termination of their association with the franchise. This suggests that franchisees are generally expected to return all documents and materials related to the Fly Fitness system.
Because the FDD does not specify which documents, if any, a franchisee can keep after termination, prospective franchisees should seek clarification from Fly Fitness regarding this matter. Understanding the specific requirements for document return and retention is crucial for ensuring compliance with the franchise agreement and avoiding potential disputes after the franchise relationship ends.