Does a notice, request, or demand for arbitration stay, postpone, or rescind the effectiveness of any termination of the Fly Fitness agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, a notice, request, or demand for arbitration will not delay, postpone, or cancel the effectiveness of any termination of the Franchise Agreement. This means that even if a franchisee initiates arbitration proceedings, the termination of their agreement remains in effect.

This clause ensures that Fly Fitness can proceed with its business operations without being held back by ongoing arbitration. It is a significant point for potential franchisees to consider, as it means termination can proceed regardless of any pending arbitration, and the franchisee must adhere to post-termination obligations immediately.

This provision is relatively common in franchise agreements, as franchisors often want to maintain control over their brand and system and avoid prolonged uncertainty during disputes. However, franchisees should be aware of this clause and understand its implications for their rights and obligations in the event of a dispute and termination.