Does the Fly Fitness franchise agreement bind the heirs of the franchisee?

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement is indeed binding on the franchisee's heirs. Specifically, the agreement is personally binding on the franchisee, including individuals executing the agreement on behalf of the franchisee entity, and extends to their respective heirs, executors, administrators, successors, or assigns.

This means that upon the death of a Fly Fitness franchisee, the obligations and benefits of the franchise agreement transfer to their heirs or legal representatives. The heirs must then adhere to the terms and conditions outlined in the agreement, unless they transfer the franchise in accordance with Article 16 of the agreement. This could include continuing to operate the franchise, fulfilling financial obligations, and upholding brand standards.

However, the FDD stipulates that this provision should not be interpreted as allowing a transfer of any interest of the franchisee or principals in the agreement or the franchised business, except as explicitly permitted under Article 16. Article 16 likely outlines specific procedures and requirements for transferring the franchise, which would need to be followed by the heirs. This ensures that Fly Fitness maintains control over who operates its franchises and that any transfer meets their standards.

For a prospective Fly Fitness franchisee, this clause highlights the importance of estate planning. Franchisees should consider how their franchise will be managed or transferred in the event of their death or incapacitation. Understanding the transfer provisions in Article 16 is crucial for ensuring a smooth transition and avoiding potential breaches of the franchise agreement.