If the non-compete geographic scope for Fly Fitness is deemed unreasonable, what happens?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
If the period of time or the geographic scope specified above, should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable.
In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Article 19 or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice thereof, and Franchisee agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if the geographic scope of the non-compete agreement is deemed unreasonable in any legal proceeding, the geographic scope will be reduced by eliminating a portion of it. This ensures that the restrictions can be enforced to the extent that they are judged reasonable.
Fly Fitness also retains the right to reduce the scope of any covenant within the agreement, or any part of it, at its discretion. This reduction is effective immediately upon the franchisee receiving written notice, and the franchisee must comply with the modified covenant.
This clause provides Fly Fitness with the flexibility to adjust the non-compete terms to ensure enforceability, while also requiring franchisees to adhere to any such modifications. Prospective franchisees should understand that the non-compete agreement's terms can be altered by Fly Fitness during the franchise term.