Is a Fly Fitness franchisee's right to enter into a Successor Franchise Agreement conditional?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.2 Conditions of Successor Agreement. Franchisee's right to enter into a Successor Franchise Agreement is conditioned upon the following:
- 5.2.1 Franchisee shall be in full compliance with this Agreement and shall have materially performed Franchisee's obligations under this Agreement, the Manual and under all other agreements that may be in effect between Franchisee and Franchisor, including but not limited to all monetary obligations.
5.2.2 Franchisee shall not have committed three (3) or more events constituting default during the then current Term of this Agreement, whether or not such defaults were cured.
5.2.3 Franchisee will have completed any required additional training to Franchisor's reasonable satisfaction.
5.2.4 Franchisee shall have obtained the right to continue to occupy the premises of the Franchised Business following the expiration of the Term hereof for the full term of the Successor Franchise Agreement and/or have received Franchisor's approval regarding locating the Franchised Business at a new location.
5.2.5 Franchisee shall execute a general release of all claims Franchisee may have against Fly Fitness Franchise, L.L.C., its parent, subsidiaries and affiliates, its officers, directors, shareholders, agents, and employees, whether in their corporate and/or individual capacities, in the form attached hereto as Attachment 4.
This release will include all claims arising under any federal, state, or local law, rule, or ordinance.
5.2.6 Franchisee performs such remodeling, repairs, replacements, and redecoration as Franchisor may require in order to cause the Franchised Business premises, equipment, fixtures, furnishings, and furniture to conform to the plans and specifications being used for new or remodeled franchised businesses on the renewal date.
5.2.7 Franchisee shall pay the required Successor Agreement Fee and sign the Successor Franchise 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's right to enter into a Successor Franchise Agreement is conditional. Specifically, Paragraph 5.2 outlines several conditions that must be met for a franchisee to be eligible for a successor agreement.
These conditions include being in full compliance with the existing Franchise Agreement, the Manual, and all other agreements with Fly Fitness, including meeting all monetary obligations. Furthermore, the franchisee must not have committed three or more events of default during the current term, regardless of whether those defaults were cured. The franchisee must also complete any required additional training to Fly Fitness's satisfaction and secure the right to continue occupying the premises for the full term of the Successor Franchise Agreement, or obtain approval for a new location.
Additionally, the franchisee is required to execute a general release of all claims against Fly Fitness and related parties, and perform any remodeling, repairs, or redecoration required by Fly Fitness to conform the premises to current standards. Finally, the franchisee must pay the required Successor Agreement Fee and sign the Successor Franchise Agreement. Failure to meet any of these conditions can result in the franchisee's right to a Successor Franchise Agreement being denied.