What is the Fly Fitness franchisee obligated to pay upon termination or expiration of the Franchise Agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must promptly pay all sums owing to Fly Fitness and its affiliates. This means that any outstanding balances, fees, or other financial obligations that the franchisee has to Fly Fitness must be settled immediately.

In addition to settling outstanding financial obligations, the franchisee is obligated to cease all operations of the Franchised Business and must not identify themselves as a Fly Fitness owner, franchisee, or licensee. The franchisee must also discontinue using any trademarks, logos, copyrighted material, or other intellectual property associated with Fly Fitness. This includes removing all signs, advertising materials, and displays that feature Fly Fitness's marks.

Furthermore, the franchisee is required to take necessary actions 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. These post-termination obligations are designed to protect Fly Fitness's brand and ensure a clean break between the franchisee and the franchise system.