Does the Fly Fitness franchise agreement include a section on 'Term'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
4. TERM.
Unless terminated earlier in accordance with the terms set forth in this Agreement, this Agreement and the Franchise granted hereunder shall commence upon the Effective Date set forth above and terminate on the date that is ten (10) years following the Opening Date, as defined in Section 8 hereof (the "Term").
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 does include a section on the term of the agreement. Specifically, Section 4 outlines the term, stating that unless terminated earlier, the agreement commences on the effective date and terminates ten years following the opening date, as defined in Section 8.
This means that a Fly Fitness franchisee can expect their initial franchise term to last for 10 years from the date their studio opens, provided they adhere to the terms of the agreement and it is not terminated early. Understanding the length of the term is crucial for franchisees as it affects their long-term business planning, investment recovery, and potential resale value.
Furthermore, the FDD also mentions conditions for renewal and potential termination, which can impact the actual duration of the franchise. For example, defaults during the term or failure to meet certain conditions can affect the franchisee's ability to renew the agreement. Therefore, prospective franchisees should carefully review the conditions for renewal and termination within the franchise agreement to fully understand their rights and obligations.