When is a notice deemed to be given under the Fly Fitness agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.3 Notice Required by Law.
If applicable law requires Franchisor to give notice to Franchisee prior to the expiration of the Term, this Agreement shall remain in effect on a month-to-month basis until Franchisor has given the notice required by such applicable law.
If Franchisor is not offering new Fly Fitness franchises, is in the process of revising, amending or renewing Franchisor's form of franchise agreement or disclosure document, or Franchisor is not lawfully able to offer Franchisee the then current form of Successor Franchise Agreement at the time Franchisee advises Franchisor pursuant to Paragraph 5.2 hereof that Franchisee desires to renew, Franchisor may, in Franchisor's sole discretion, (i) offer to renew this Agreement upon the same terms set forth herein for the appropriate successor term or (ii) offer to extend the Term hereof on a month-to-month basis following the expiration of the Term for as long as Franchisor deems necessary or appropriate so that Franchisor may lawfully offer the then current form of Successor Franchise Agreement.
Any timeframes specified in this Paragraph 5 shall be inclusive of any state mandated notice periods.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
The Fly Fitness 2024 Franchise Disclosure Document (FDD) states that if applicable law requires Fly Fitness to give notice to the franchisee before the expiration of the franchise term, the agreement will remain in effect on a month-to-month basis. This continues until Fly Fitness provides the notice required by the applicable law. This ensures that Fly Fitness remains compliant with any legal requirements regarding notice periods prior to the termination or non-renewal of the franchise agreement.
This provision is particularly important for prospective franchisees as it highlights Fly Fitness's adherence to legal standards and its willingness to maintain the franchise agreement under specific conditions. The clause protects the franchisee by ensuring that the franchise operation can continue on a month-to-month basis if Fly Fitness needs additional time to provide legally mandated notices. This can prevent abrupt terminations or non-renewals that could disrupt the franchisee's business operations.
Furthermore, the FDD specifies that any timeframes mentioned in this section include any state-mandated notice periods. This means that Fly Fitness will account for and comply with any notice requirements set by individual states, providing an additional layer of protection for franchisees. For example, the FDD includes an amendment required by the state of Minnesota, stating that except in certain specified cases, Fly Fitness will give the franchisee 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the Franchise Agreement.
In summary, this clause in the Fly Fitness franchise agreement ensures that franchisees receive the legally required notice before any changes to their franchise term, offering a degree of stability and legal compliance. Prospective franchisees should be aware of these protections and understand how they apply in their specific state to ensure they are fully informed of their rights and obligations.