What releases must be executed by the Fly Fitness franchisee and transferee as a condition of transfer?

According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must execute a general release of all claims as a condition of the franchise agreement renewal. Specifically, the franchisee must release Fly Fitness Franchise, L.L.C., its parent, subsidiaries, and affiliates, including their officers, directors, shareholders, agents, and employees in both corporate and individual capacities. The release must be in the form attached as Attachment 4 to the Franchise Agreement.

This release encompasses all claims arising under any federal, state, or local law, rule, or ordinance. This means the franchisee waives their right to sue Fly Fitness for practically any reason, including statutory claims.

It is important to note that in the state of Minnesota, Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes. Therefore, if the Fly Fitness franchise is located in Minnesota, this release requirement may not be enforceable except in the case of a voluntary settlement of disputes.