Are the obligations of the Fly Fitness Franchisee binding on their successors and assigns?

According to Fly Fitness's 2024 Franchise Disclosure Document, the Franchise Agreement is binding on the franchisee and their successors and assigns. Specifically, the agreement is personally binding on the franchisee, including individuals executing the agreement on behalf of the franchisee entity, as well as their heirs, executors, administrators, successors, or assigns. However, this does not allow a transfer of any interest of the franchisee or principals in the agreement or the franchised business, except as outlined in Article 16 of the agreement.

This means that if a franchisee passes away or the business is transferred according to the terms in Article 16, the obligations of the Franchise Agreement will extend to the new owner or responsible party. This ensures that the standards and requirements of the Fly Fitness franchise system are maintained even if the original franchisee is no longer involved.

Article 16 outlines the specific conditions and procedures for transferring the franchise. It states that the franchisee's rights and duties are personal, based on the franchisor's assessment of the franchisee's character, skills, and financial capacity. Therefore, any transfer requires the franchisor's prior written approval, and any transfer made without this approval may be voided by Fly Fitness. This allows Fly Fitness to maintain control over who operates their franchises and ensures that new franchisees meet their standards.