Does Fly Fitness need the Developer's permission to assign the Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.2 Successors. This Agreement shall bind and inure to the benefit of the successors and assigns of Franchisor and shall be personally binding on and inure to the benefit of Developer and his or her respective heirs, executors, administrators and successors or assigns; provided, however, the foregoing provision shall not be construed to allow a transfer of any interest of Developer in this Agreement, except in accordance with Article 6 hereof.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement is binding to the successors and assigns of Fly Fitness. It is also personally binding to the developer and their heirs, administrators, and successors or assigns. However, the document stipulates that the developer cannot transfer any interest in the agreement unless it is in accordance with Article 6.
This means that while the agreement generally extends to successors, the developer's ability to transfer their interest is specifically restricted and subject to the conditions outlined in Article 6 of the agreement. A potential franchisee should carefully review Article 6 to understand the specific requirements and limitations regarding the transfer of their rights and obligations under the agreement.
It is important for a prospective Fly Fitness developer to seek legal counsel to fully understand the implications of this clause and how it may affect their ability to sell, transfer, or assign their rights in the future. Understanding these conditions is crucial for making an informed decision about entering into a Fly Fitness development agreement.