What are Franchisees of Fly Fitness required to do with Internet Companies regarding Electronic Advertising and Telephone Listings upon termination?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Transfer. On Termination of the Franchise Agreement, or on periodic request of Franchisor, Franchisee will immediately:
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising and Telephone Listings: (i) to transfer all of Franchisee's Interest in such Electronic Advertising and Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Electronic Advertising and Telephone Listings, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or will take such other actions with respect to the Electronic Advertising and Telephone Listings as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's Interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
- 2.4 Appointment; Power of Attorney.
Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, upon termination of the Franchise Agreement, franchisees are required to take specific actions regarding their internet and telephone listings. Fly Fitness requires franchisees to direct all Internet Companies with which they have Electronic Advertising and Telephone Listings to transfer all interest in such advertising and listings to Fly Fitness. Franchisees must also execute documents and take actions necessary to effectuate this transfer.
However, if Fly Fitness does not want to accept any or all of the Electronic Advertising and Telephone Listings, the franchisee must immediately direct the Internet Companies to terminate the Electronic Advertising and Telephone Listings. Alternatively, the franchisee will take other actions with respect to the Electronic Advertising and Telephone Listings as Fly Fitness directs.
Similarly, franchisees must direct all Telephone Companies with which they have Telephone Listings to transfer all interest in those listings to Fly Fitness and execute necessary documents. If Fly Fitness does not want the Telephone Listings, the franchisee must direct the Telephone Companies to terminate such listings or take other actions as directed by Fly Fitness. Fly Fitness is also granted power of attorney to take action and execute documents necessary to accomplish the terms of the agreement.