factual

If Fly Fitness assigns the Franchise Agreement, is Fly Fitness required to remain in the fitness business?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

If Franchisor assigns its rights in this Agreement, nothing herein shall be deemed to require Franchisor to remain in the fitness business or to offer or sell any products or services to Franchisee.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, if Fly Fitness assigns its rights in the Franchise Agreement, it is not required to remain in the fitness business or to offer or sell any products or services to the franchisee. This means that Fly Fitness has the right to exit the fitness industry entirely if it chooses to assign the agreement to another party.

For a prospective franchisee, this clause introduces an element of uncertainty. The new assignee may have different priorities, business practices, or levels of support compared to Fly Fitness. The franchisee could find themselves dealing with a company that doesn't have the same expertise or commitment to the Fly Fitness brand.

It's important for potential franchisees to consider this possibility and evaluate the potential impact on their business. While Fly Fitness retains the right to assign the agreement, franchisees should inquire about the criteria Fly Fitness will use to select an assignee and what protections will be in place to ensure a smooth transition and continued support for franchisees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.