Is the Fly Fitness franchise agreement personally binding on the franchisee?

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement is personally binding on the franchisee. Specifically, the agreement is binding on the franchisee, including the individuals executing the agreement on behalf of the franchisee entity, and their respective heirs, executors, administrators, successors, or assigns. However, this does not allow a transfer of any interest of the franchisee or principals in the agreement or the franchised business, except as outlined in Article 16 of the agreement.

This means that the individuals who sign the Fly Fitness Franchise Agreement on behalf of the franchisee entity are personally responsible for upholding the terms and conditions of the agreement. This personal obligation extends to their heirs, executors, administrators, and successors. Franchisees should understand that their personal assets could be at risk if the business fails to meet its obligations under the agreement.

This clause is fairly standard in franchising, as franchisors want to ensure that the individuals behind the franchise are fully committed to the business and are held accountable for its performance. Prospective Fly Fitness franchisees should carefully review Article 16 to understand the specific conditions under which a transfer of interest is permitted, as any unauthorized transfer could be deemed a breach of contract.