Can a notice, request, or demand for arbitration stay the 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 or prevent the termination of the franchise agreement. This means that even if a franchisee initiates arbitration proceedings, Fly Fitness can still proceed with the termination process if grounds for termination exist.

This provision protects Fly Fitness's ability to terminate agreements promptly when necessary, without being held up by lengthy arbitration processes. However, the franchisee still retains the right to pursue arbitration to dispute the termination itself or seek damages, but the termination remains in effect during the arbitration.

This clause is important for prospective franchisees to understand, as it clarifies that initiating arbitration does not provide any protection against immediate termination. Franchisees need to be aware of the conditions under which Fly Fitness can terminate the agreement and that they must continue to comply with all terms of the agreement while pursuing any dispute resolution.