For Fly Fitness, what is the effect of a request for arbitration on a termination of the agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, a request or demand for arbitration does not halt or reverse a termination of the Franchise Agreement. This means that even if a franchisee initiates arbitration proceedings to dispute a termination, the termination remains in effect unless otherwise determined.

This clause ensures that Fly Fitness can proceed with business decisions, such as re-franchising a location, without being held up by lengthy arbitration processes. However, the franchisee still retains the right to pursue arbitration to seek remedies or damages resulting from the termination, but the termination itself stands unless the arbitration outcome dictates otherwise.

This provision is fairly common in franchise agreements, as franchisors typically want to maintain control over their brand and system. Franchisees should be aware of this clause and understand that initiating arbitration will not automatically reinstate their franchise if it has been terminated.