How many defaults in obligations or notices of default can a Fly Fitness franchisee receive before the franchise agreement can be terminated?

According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee can commit up to two default events during the term of the agreement without risking termination based solely on the number of defaults. However, if the franchisee commits three or more events constituting default during the term of the agreement, Fly Fitness has grounds for termination, regardless of whether the defaults were cured.

This provision means that Fly Fitness franchisees must diligently maintain compliance with all aspects of the franchise agreement. Even if a franchisee corrects a default, the occurrence still counts toward the limit of two. Exceeding this limit gives Fly Fitness the right to terminate the agreement, potentially resulting in the loss of the franchise.

It is important for prospective franchisees to fully understand what constitutes a default under the Fly Fitness franchise agreement. Careful attention to operational standards, payment schedules, and other contractual obligations is necessary to avoid accumulating multiple defaults that could jeopardize the franchise agreement.