Can a Fly Fitness franchisee waive claims against the franchisor for business failure?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT G
FLY FITNESS ACKNOWLEDGEMENT STATEMENT
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- Franchisee (or Developer) has conducted an independent investigation of all aspects relating to the financial, operational, and other aspects of the business of operating the Franchised Business. Franchisee (or Developer) further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has been made to Franchisee (or Developer) by Franchisor and Franchisee (or Developer) and any and all Principals hereby waive any claim against Franchisor for any business failure Franchisee (or Developer) may experience as a franchisee (or developer) under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee (or developer) acknowledges that, except as set forth in the Disclosure Document, Fly Fitness has not made any representations of performance (financial or otherwise). The franchisee (or developer) and any and all Principals waive any claim against Fly Fitness for any business failure the Franchisee (or Developer) may experience as a franchisee (or developer) under the Franchise Agreement. However, the FDD also states that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with the commencement of the franchise relationship shall waive any claims under any applicable state franchise law, including fraud in the inducement, or disclaiming reliance on any statement made by any franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
In simpler terms, while the franchisee agrees they cannot hold Fly Fitness responsible for business failure based on representations not included in the Disclosure Document, this waiver does not extend to claims of fraud or violations of state franchise laws. This means a franchisee still retains certain legal rights and protections, particularly if they believe Fly Fitness misrepresented information or violated franchise regulations.
This clause attempts to balance the franchisor's need to avoid liability for business failures against the franchisee's right to legal recourse in cases of misconduct by the franchisor. Prospective franchisees should carefully review the Disclosure Document and any representations made by Fly Fitness to ensure they align, and understand that their waiver is limited and does not cover all potential claims.