What monetary obligations and non-competition covenants and agreements of the Franchisee does the Guarantor agree to be bound by under the Fly Fitness franchise agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the monetary obligations and non-competition covenants and agreements of the Franchisee as set forth in the Franchise Agreement, including but not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement ("Guaranteed Obligations"). Guarantor shall perform and/or make punctual payment to Franchisor of the Guaranteed Obligations in accordance with the terms of the Franchise Agreement or other applicable document forthwith upon demand by Franchisor.
This Guaranty is an absolute and unconditional continuing guaranty of payment and performance of the Guaranteed Obligations. This Guaranty shall not be discharged by renewal of any claims guaranteed by this instrument, change in ownership or control of the Franchisee entity, transfer of the Franchise Agreement, the suffering of any indulgence to any debtor, extension of time of payment thereof, nor the discharge of Franchisee by bankruptcy, operation of law or otherwise. Presentment, demand, protest, notice of protest and dishonor, notice of default or nonpayment and diligence in collecting any obligation under any agreement between Franchisee and Franchisor are each and all waived by Guarantor and/or acknowledged as inapplicable. Guarantor waives notice of amendment of any agreement between Franchisee and Franchisor and notice of demand for payment by Franchisee. Guarantor further agrees to be bound by any and all amendments and changes to any agreement between Franchisee and Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Guarantor agrees to be bound by the monetary obligations and non-competition covenants and agreements of the Franchisee as outlined in the Franchise Agreement. Specifically, the Guarantor's obligations include, but are not limited to, the covenants set forth in Sections 19.2, 19.5, 19.6, 19.8 and 19.9 of the Franchise Agreement, referred to as the "Guaranteed Obligations".
The Guarantor is responsible for the punctual payment of these Guaranteed Obligations to Fly Fitness, as per the terms of the Franchise Agreement. This commitment is absolute and unconditional, acting as a continuing guarantee of both payment and performance. The Guarantor's obligations remain even if there are renewals of claims, changes in ownership, transfers of the Franchise Agreement, or any leniency shown to the debtor.
The Guarantor also waives certain rights, including the right to be notified of defaults or nonpayment, and agrees to be bound by any amendments made to the agreement between the Franchisee and Fly Fitness. This ensures that Fly Fitness is protected, and the Guarantor is fully committed to fulfilling the Franchisee's obligations.