What happens if a Fly Fitness franchisee is dissolved?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
no event shall Franchisee have recourse against Franchisor for loss of revenue, customer goodwill, profits or other business arising from Franchisor's actions and the actions of suppliers.
18. POST-TERMINATION.
- 18.1. Franchisee's Obligations. Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
- 18.1.1. immediately cease to operate the Franchised Business, and shall not thereafter, directly, or indirectly identify himself, herself or itself as a Fly Fitness owner, franchisee, or licensee;
- 18.1.2. immediately and permanently (i) cease to use the Marks, any imitation of any Mark, logos, copyrighted material, or other Intellectual Property, Confidential Information, other confidential or proprietary material or indicia of a Fly Fitness outlet, (ii) cease to use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Franchisor's affiliates, or the System and (iii) de-identify the Franchised Business premises. In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms, and any other articles, which display the Marks;
- 18.1.3. take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
- 18.1.4.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, all rights and licenses granted to the franchisee immediately terminate. The franchisee must immediately cease operating the Franchised Business and cannot identify themselves as a Fly Fitness owner, franchisee, or licensee.
Furthermore, the franchisee must immediately and permanently stop using the Fly Fitness Marks, any imitations thereof, logos, copyrighted material, or other intellectual property. They must also cease using any trade name or service mark that suggests an association with Fly Fitness. The franchisee is required to de-identify the Franchised Business premises, removing all signs, advertising materials, and other articles displaying the Marks.
The franchisee must take necessary actions to cancel any assumed name registrations containing the Fly Fitness Mark and provide evidence of compliance to Fly Fitness within five days of termination or expiration. Additionally, the franchisee is obligated to promptly pay all sums owed to Fly Fitness and its affiliates. For a period of twenty-four months after termination, the franchisee is restricted from engaging in any fitness or exercise business within ten miles of the Territory or any Fly Fitness location, and from diverting customers or employing Fly Fitness personnel.