What is the minimum term length required for the Multi-Unit Development Agreement executed by the transferee of a Fly Fitness franchise?

According to Fly Fitness's 2024 Franchise Disclosure Document, a transferee of a Multi-Unit Development Agreement must execute Fly Fitness's then-standard form of the agreement. The term must be no less than the unexpired term of future development obligations due pursuant to the Mandatory Development Schedule of the existing agreement.

This means that if a Fly Fitness developer transfers their rights to another party, the new developer must commit to fulfilling the original development schedule. The agreement ensures that the new developer is bound by the same timeline and obligations as the original developer, maintaining the pace of expansion planned by Fly Fitness.

This requirement protects Fly Fitness's interests by ensuring that development plans remain on track even if the original developer transfers the agreement. For a potential transferee, it's crucial to understand the remaining development schedule and obligations before entering into the agreement, as they will be responsible for meeting those commitments.