What happens if a Fly Fitness developer terminates the agreement without cause?

According to Fly Fitness's 2024 Franchise Disclosure Document, if a developer terminates the agreement without cause, it constitutes a material default, and Fly Fitness has the option to terminate the agreement immediately upon notice.

Upon termination of the agreement, the developer must immediately cease all development operations. Additionally, the developer must comply with the non-disclosure and non-competition covenants outlined in Article 8 of the agreement. These covenants likely restrict the developer from engaging in similar businesses or disclosing confidential information for a specified period and within a certain geographic area.

These terms are fairly standard in franchising, designed to protect the franchisor's brand and system. Prospective Fly Fitness developers should carefully review Article 8 to fully understand the scope and duration of the non-compete and non-disclosure obligations, as these will significantly impact their ability to pursue other business ventures after terminating the agreement.