What financial obligations must a Fly Fitness franchisee fulfill before a transfer can be approved?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
n shall be deemed to require Franchisor to remain in the fitness business or to offer or sell any products or services to Franchisee.
- 16.2. Restrictions on Transfers by Franchisee. Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee. Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval. Franchisor may void any transfer made without such approval.
- 16.3. Transfers by Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, a franchisee's rights and duties under the agreement are personal, and no transfer can occur without Fly Fitness's prior written approval. Fly Fitness may void any transfer made without such approval. The franchisee cannot directly or indirectly sell, assign, transfer, give, devise, convey, or encumber the agreement, the franchise, the franchised business, or any assets without the franchisor's written consent.
While the FDD states that a transfer cannot occur without Fly Fitness's written consent, it does not specify the exact financial obligations that must be met before a transfer is approved. The document outlines the need for franchisor approval for any transfer of the agreement, franchise, or business assets, but it does not detail the specific financial criteria or requirements that Fly Fitness will consider when granting or denying such approval.
Therefore, a prospective Fly Fitness franchisee should directly ask the franchisor for a comprehensive list of financial obligations, including any outstanding fees, debts, or other financial requirements, that must be satisfied before a transfer can be approved. Understanding these obligations is crucial for any franchisee considering selling or transferring their Fly Fitness business to ensure a smooth and approved transfer process.