What happens if a Fly Fitness developer attempts a transfer in violation of Article 6 of the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.2 Defaults with No Opportunity to Cure. Developer shall be deemed to be in material default and Franchisor may, at its option, terminate this Agreement and all rights granted hereunder, without affording Developer any opportunity to cure the default, effective immediately upon notice to Developer, if Developer:
- 7.2.5 attempts a Transfer in violation of the provisions of Article 6 of this Agreement;
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if a developer attempts a transfer in violation of Article 6 of the agreement, it constitutes a material default. In such a case, Fly Fitness has the option to terminate the agreement and all rights granted to the developer immediately upon notification, without providing an opportunity to cure the default.
This provision is significant for potential Fly Fitness developers as it underscores the importance of adhering to the transfer conditions outlined in Article 6 of the agreement. Failure to comply with these conditions can lead to immediate termination of the development agreement, resulting in the loss of development rights.
This type of clause is relatively standard in franchise agreements, as franchisors typically want to maintain control over who is developing their brand. Prospective developers should carefully review Article 6 to understand the specific requirements and restrictions related to transfers to avoid unintentionally triggering a default and subsequent termination of their agreement with Fly Fitness.