Does the Fly Fitness General Release cover claims arising before or after the execution date?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- BY EXECUTING THE FRANCHISE AGREEMENT (OR MULTI-UNIT DEVELOPMENT AGREEMENT), FRANCHISEE (OR DEVELOPER) AND ANY PRINCIPAL, INDIVIDUALLY AND ON BEHALF OF FRANCHISEE'S (OR DEVELOPER'S) AND SUCH PRINCIPAL'S HEIRS, LEGAL REPRESENTATIVES, SUCCESSORS AND ASSIGNS, HEREBY FOREVER RELEASE AND DISCHARGE FLY FITNESS FRANCHISE, L.L.C., FLY HOLDINGS LLC, AND ANY OF THE ABOVE'S PARENT COMPANY, SUBSIDIARIES, DIVISIONS, AFFILIATES, SUCCESSORS, ASSIGNS AND DESIGNEES, AND THE FOREGOING ENTITIES' DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, SHAREHOLDERS, SUCCESSORS, DESIGNEES AND REPRESENTATIVES FROM ANY AND ALL CLAIMS, DEMANDS AND JUDGMENTS RELATING TO OR ARISING UNDER THE STATEMENTS, CONDUCT, CLAIMS OR ANY OTHER AGREEMENT BETWEEN THE PARTIES EXECUTED PRIOR TO THE DATE OF THE FRANCHISE AGREEMENT (OR MULTI-UNIT DEVELOPMENT AGREEMENT), INCLUDING, BUT NOT LIMITED TO, ANY AND ALL CLAIMS, WHETHER PRESENTLY KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, ARISING UNDER THE FRANCHISE, SECURITIES, TAX OR ANTITRUST LAWS OF THE UNITED STATES OR OF ANY STATE OR TERRITORY THEREOF. THIS RELEASE SHALL NOT APPLY TO ANY CLAIMS ARISING FROM REPRESENTATIONS MADE BY FRANCHISOR IN FRANCHISOR'S FRANCHISE DISCLOSURE DOCUMENT RECEIVED BY FRANCHISEE (OR DEVELOPER).
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the General Release that a franchisee must execute covers claims arising before the date of the Franchise Agreement. Specifically, by signing the Franchise Agreement, the franchisee releases Fly Fitness from all claims, demands, and judgments relating to statements, conduct, claims, or any other agreement between the parties executed prior to the date of the Franchise Agreement. This includes claims that are presently known or unknown, suspected or unsuspected, arising under franchise, securities, tax, or antitrust laws.
However, this release does not apply to any claims arising from representations made by Fly Fitness in its Franchise Disclosure Document (FDD) that the franchisee received. This means that if a franchisee believes they were misled by information in the FDD itself, they are not prevented from pursuing claims related to those misrepresentations.
This type of general release is a common practice in franchising, intended to resolve any pre-existing disputes or uncertainties between the franchisor and franchisee. Prospective Fly Fitness franchisees should carefully review all documents and communications with Fly Fitness prior to signing the Franchise Agreement to ensure they are not inadvertently waiving any important rights or claims. It is advisable to consult with an attorney to fully understand the implications of the General Release.