What happens to the Fly Fitness agreement upon expiration or earlier termination?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
reasonably required assuming Developer proceeds diligently to cure; provided, however, Franchisor has no obligation to give written notice of a non-monetary default more than two (2) times in any twelve (12)–month period, and the third such default, whether monetary or non-monetary, in any twelve (12) – month period shall be a non-curable default under Section 7.2.
- 7.4 Post-Termination Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Developer shall immediately terminate and Developer shall (i) immediately cease all development operations pursuant to this Agreement; and (ii) comply with the non-disclosure and non-competition covenants contained in Article 8.
8. NON-DISCLOSURE AND NON-COMPETITION COVENANTS.
8.1 Confidential Information.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, upon termination or expiration of the agreement, all rights and licenses granted to the Developer immediately terminate. The Developer must immediately cease all development operations related to the agreement.
Furthermore, the franchisee must comply with the non-disclosure and non-competition covenants outlined in Article 8 of the agreement. These covenants restrict the franchisee's ability to engage in activities that could harm the Fly Fitness brand or business, such as divulging confidential information or operating a competing business within a specified area.
The expiration or earlier termination of the agreement does not release the Developer from any liabilities or obligations that have accrued or that continue beyond the termination date. Any obligation of Developer that contemplates performance of such obligation after termination, expiration or transfer of this Agreement shall be deemed to survive such termination, expiration or transfer.