factual

Does the Fly Fitness franchise agreement include a Form of Release?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 5.2.5 Franchisee shall execute a general release of all claims Franchisee may have against Fly Fitness Franchise, L.L.C., its parent, subsidiaries and affiliates, its officers, directors, shareholders, agents, and employees, whether in their corporate and/or individual capacities, in the form attached hereto as Attachment 4.

This release will include all claims arising under any federal, state, or local law, rule, or ordinance.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement includes a general release of claims. Specifically, as a condition of renewal, the franchisee must execute a general release of all claims against Fly Fitness Franchise, L.L.C., its parent, subsidiaries, and affiliates, as well as their officers, directors, shareholders, agents, and employees. This release must be in the form attached as Attachment 4 to the agreement. This release encompasses all claims arising under any federal, state, or local law, rule, or ordinance.

This means that if a franchisee wants to renew their Fly Fitness franchise agreement, they must sign a document releasing Fly Fitness from any potential legal claims they might have. This could include claims related to the franchise agreement itself, or any other aspect of their relationship with Fly Fitness.

However, the FDD also includes an amendment required by the state of Minnesota that affects the release. For franchisees in Minnesota, the standard release requirement is modified. Minnesota Rules prohibit a franchisor from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes. Therefore, any provisions in the Fly Fitness Franchise Agreement that are inconsistent with this rule are deleted for Minnesota franchisees. This suggests that while Fly Fitness typically requires a release, this requirement is subject to state-specific legal restrictions.

Prospective franchisees should carefully review Attachment 4 and understand the scope of the claims they are releasing. They should also be aware of any state-specific addenda that may modify the release requirements, such as the one for Minnesota. It would be prudent to consult with an attorney to fully understand the implications of signing such a release.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.