factual

What is the Fly Fitness franchisee's responsibility if the franchisor discontinues the use of a Mark?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

Franchisor reserves the right to substitute different Marks for use in identifying the System and the Franchised Business, if it in its sole discretion, determines that substitution of different Marks will be beneficial to the System.

Franchisor will not be liable to Franchisee for any expenses, losses or damages sustained by Franchisee as a result of any additions, modifications, substitutions, or discontinuation of the Marks.

Franchisee covenants not to commence or join in any litigation or other proceeding against Franchisor for any of these expenses, losses, or damages.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness reserves the right to substitute different marks for use in identifying the System and the Franchised Business, if it in its sole discretion, determines that substitution of different Marks will be beneficial to the System. Fly Fitness will not be liable to the franchisee for any expenses, losses, or damages sustained by the franchisee as a result of any additions, modifications, substitutions, or discontinuation of the Marks. The franchisee covenants not to commence or join in any litigation or other proceeding against Fly Fitness for any of these expenses, losses, or damages.

In simpler terms, Fly Fitness can change its branding (marks) if it believes it will help the franchise system. If Fly Fitness makes such changes, the franchisee cannot hold Fly Fitness responsible for any costs or losses the franchisee incurs as a result of these changes. The franchisee also agrees not to sue Fly Fitness over these changes.

This clause protects Fly Fitness from legal action and financial claims if it decides to rebrand or discontinue a particular mark. For a prospective franchisee, this means they must be prepared to adapt to branding changes and absorb any associated costs, such as updating signage or marketing materials, without expecting compensation from Fly Fitness. This is a fairly standard clause in franchise agreements, as franchisors need the flexibility to update their branding to stay competitive and relevant.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.