Does the Fly Fitness franchise agreement include a section on 'Post-Termination'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
18. POST-TERMINATION.
- 18.1.
Franchisee's Obligations.
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)
Yes, according to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement includes a section addressing obligations after termination or expiration of the agreement. Specifically, Section 18 outlines the franchisee's responsibilities upon termination or expiration.
Upon termination or expiration of the Fly Fitness franchise agreement, the franchisee must immediately cease operating the Franchised Business and cannot identify themselves as a Fly Fitness owner, franchisee, or licensee. The franchisee must also immediately and permanently stop using the Marks, logos, copyrighted material, or other intellectual property associated with Fly Fitness. This includes refraining from using any trade names or commercial symbols that suggest a past or current association with Fly Fitness. The franchisee is also responsible for de-identifying the Franchised Business premises.
Furthermore, the franchisee is required to cancel any assumed name registrations that contain Fly Fitness's trademarks and provide evidence of compliance to Fly Fitness within five days of termination or expiration. All outstanding payments to Fly Fitness and its affiliates must also be promptly paid. These post-termination obligations are designed to protect Fly Fitness's brand and ensure a clean break between the franchisee and the franchise system.