What happens if a Fly Fitness Developer attempts an unauthorized transfer of the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ailing party in such action shall be entitled to recover reasonable attorneys' fees and court costs incurred.
- 10.10 Survival. The provisions of this Article 10 shall continue in full force and effect notwithstanding the expiration or termination of this Agreement or a transfer by Franchisee or any Principal of their respective interests in this Agreement.
11. GENERAL
- 11.1 Independent Licensee. Developer is and shall be an independent licensee under this Agreement, and no partnership shall exist between Developer and Franchisor. This Agreement does not constitute Developer as an agent, legal representative, or employee of Franchisor for any purpose whatsoever, and Developer is not granted any right or authority to assume or create any obligation for or on behalf of, or in the name of, or in any way to bind Franchisor. Developer agrees not to incur or contract any debt or obligation on behalf of Franchisor or commit any act, make any representation, or advertise in any manner which may adversely affect any right of Franchisor or be detrimental to Franchisor or other developers or franchisees of Franchisor. Pursuant to the above, Developer agrees to indemnify Franchisor and hold Franchisor harmless from any and all liability, loss, attorneys' fees, or damage Franchisor may suffer as a result of claims, demands, taxes, costs or judgments against Franchisor arising out of the relationship hereby established which specifically, but not exclusively, includes costs, losses, expenses, attorneys fees relative to assignment or the transfer of right to develop and transactional costs relative thereto, defaults under any leases, subleases, notes, receipt of revenues or any other relationships arising directly or indirectly out of the development and operation of the Fly Fitness outlets.
- 11.2 Successors. This Agreement shall bind and inure to the benefit of the successors and assigns of Franchisor and shall be personally binding on and inure to the benefit of Developer and his or her respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision shall not be construed to allow a transfer of any interest of Developer in this Agreement, except in accordance with Article 6 hereof.
- 11.3 Invalidity of Part of Agreement. Should any provisions in this Agreement, for any reason, be declared invalid, then such provision shall be invalid only to the extent of the
- prohibition without in any way invalidating or altering any other provision of this Agreement.
- 11.4 Entire Agreement. This Agreement, including all attachments, is the entire agreement of the parties, superseding all prior written or oral agreements of the parties concerning the same subject matter, and superseding all prior written or oral representations made to Developer, except the representations made to Developer in Franchisor's Franchise Disclosure Document. No agreement of any kind relating to the matters covered by this Agreement and no amendment of the provisions hereof shall be binding upon either party unless and until the same has been made in writing and executed by all interested parties.
- 11.5 Construction.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement is personally binding on the Developer, and the Developer cannot transfer any interest in the agreement except as outlined in Article 6. If a Fly Fitness Developer attempts an unauthorized transfer of the agreement, it will be considered a material default, leading to the automatic termination of all rights granted in the agreement without notice.
Article 6 outlines the specific conditions for transferring the agreement, including the franchisor's right of first refusal. If the Fly Fitness Developer receives an offer to purchase the franchise, Fly Fitness has the option to buy the franchise on the same terms. If Fly Fitness declines to exercise this right within 30 days, the Developer may proceed with the transfer to the third party, provided the terms are no more favorable than those initially disclosed to Fly Fitness and that Fly Fitness provides prior written approval. The sale to the transferee must be completed within 120 days, or the offer will again be subject to Fly Fitness's right of first refusal.
In the event of the Developer's death or permanent disability, the agreement must be transferred within six months to a third party approved by Fly Fitness. Failure to transfer the agreement within this timeframe constitutes a material default, resulting in the termination of all rights granted by the agreement. Any transfer due to death or disability is subject to the conditions outlined in Article 6.
Additionally, the Developer agrees to indemnify Fly Fitness from any liability, loss, attorneys' fees, or damage Fly Fitness may suffer as a result of claims, demands, taxes, costs, or judgments against Fly Fitness arising out of the relationship established by the agreement. This includes costs, losses, expenses, and attorneys' fees related to the assignment or transfer of the right to develop and transactional costs related thereto.