Can Fly Fitness reduce the scope of the non-compete covenant without the franchisee's consent?

According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness has the right to reduce the scope of any non-compete covenant without the franchisee's consent. This means Fly Fitness can modify the restrictions on a franchisee's ability to compete with the franchise, and the change becomes effective immediately once the franchisee receives written notice. The franchisee is then obligated to comply with the modified covenant.

This clause gives Fly Fitness significant flexibility to adjust the non-compete terms as they see fit. This could be beneficial in some situations, such as allowing a franchisee to pursue a business opportunity that would have been prohibited under the original terms. However, it also carries the risk that Fly Fitness could broaden the scope of the non-compete agreement, further limiting the franchisee's future business activities.

It is fairly common for franchise agreements to include non-compete clauses to protect the brand and business model. However, the ability for a franchisor to unilaterally modify the scope of these clauses is not standard. Prospective franchisees should carefully consider this provision and how it might impact their future plans before investing in a Fly Fitness franchise. They may want to seek legal counsel to fully understand the implications of this clause.