Are the franchisee's rights and duties under the Fly Fitness agreement personal to the franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee.
Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval.
Franchisor may void any transfer made without such approval.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee's rights and duties under the franchise agreement are indeed personal to the franchisee. Fly Fitness emphasizes that the agreement is made in reliance on their perception of the franchisee's individual and collective character, skills, aptitude, attitude, business ability, and financial capacity. This indicates that Fly Fitness places significant importance on the specific qualities and capabilities of the franchisee when entering into the agreement.
Because the agreement is personal, the franchisee cannot transfer the agreement or any rights or interests without Fly Fitness's prior written approval. Fly Fitness retains the right to void any transfer made without their consent. This restriction on transferability is a common practice in franchising, designed to ensure that the brand is represented by individuals or entities that meet the franchisor's standards and qualifications.
This clause protects Fly Fitness by ensuring that franchisees cannot simply hand off their responsibilities to someone who may not be suitable, thereby safeguarding the brand's reputation and the integrity of the franchise system. For a prospective franchisee, this means they should be prepared to be actively involved in the business and understand that exiting the agreement may require Fly Fitness's approval, potentially limiting their flexibility.