For Fly Fitness, what happens if a court determines that any of the arbitration provisions are unlawful?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.3.4 The provisions of this Section 10.3 are independent of any other covenant or provision of this Agreement; provided, however, that if a court of competent jurisdiction determines that any of the provisions are unlawful in any way, the court will modify or interpret the provisions to the minimum extent necessary to have them comply with the law.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if a court of competent jurisdiction determines that any of the arbitration provisions are unlawful, the court will modify or interpret the provisions to the minimum extent necessary to comply with the law. This ensures that the agreement to arbitrate remains enforceable to the fullest extent possible.
This clause is designed to preserve the enforceability of the arbitration agreement. Rather than invalidating the entire arbitration provision, the court will attempt to revise the specific unlawful parts to make them legal. This approach reflects a preference for resolving disputes through arbitration, which is generally faster and less expensive than litigation.
For a prospective Fly Fitness franchisee, this means that even if certain aspects of the arbitration process are found to be unenforceable, the core agreement to arbitrate disputes will likely remain in effect. Franchisees should be aware of this provision and understand that disputes with Fly Fitness will likely be resolved through arbitration, even if some specific procedures are modified by a court.