How long after the death or permanent disability of a Fly Fitness franchisee or principal does their representative have to transfer the franchise interest?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The grant of rights under this Agreement is personal to Franchisee, and on the death or permanent disability of Franchisee or any of Franchisee's Principals, the executor, administrator, conservator or other personal representative of Franchisee or Principal, as the case may be, shall be required to transfer Franchisee's or Principal's interest in this Agreement within six (6) months from the date of death or permanent disability to a third party approved by Franchisor.
Failure to transfer in accordance with the forgoing will constitute a material default and the Franchise granted by this Agreement will terminate.
A transfer under this Section 16.7, including without limitation, transfer by devise or inheritance, is subject to the conditions for Transfers in this Article 16 and unless transferred by gift, devise, or inheritance, subject to the terms of Section 16.6 above.
For purposes of this Agreement, the term "permanent disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent such person from providing continuous and material supervision of the operation of Franchisee's Franchised Business during the six (6)-month period from its onset.
Immediately after the death or permanent disability ofsuch person, or while the Franchise is owned by an executor, administrator, guardian, personal representative or trustee of that person, the Franchised Business shall be supervised by an interim successor manager satisfactory to Franchisor, or Franchisor, in its sole discretion, may provide interim management pursuant to and on the terms of Section 11.3.3 hereof, pending transfer of the Franchise to the deceased or disabled individual's lawful heirs or successors.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or one of their principals, their representative is required to transfer the franchisee's interest in the Franchise Agreement within six months from the date of death or permanent disability. This transfer must be to a third party approved by Fly Fitness.
Failure to transfer the franchise interest within the specified six-month period constitutes a material default of the Franchise Agreement, which can lead to termination of the franchise. The FDD defines "permanent disability" as a mental or physical condition that prevents the person from providing continuous and material supervision of the Fly Fitness franchised business during the six-month period following the onset of the disability.
Following the death or permanent disability, Fly Fitness requires the Franchised Business to be supervised by an interim successor manager satisfactory to Fly Fitness. Alternatively, Fly Fitness may, at its discretion, provide interim management while the transfer of the franchise to the deceased or disabled individual's lawful heirs or successors is pending. Any transfer, including those by devise or inheritance, is subject to the standard transfer conditions outlined in the Franchise Agreement.