Does Fly Fitness have to remain in the fitness business if it assigns its rights in the Franchise Agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness is not required to remain in the fitness business if it assigns its rights in the Franchise Agreement. Specifically, the FDD states that nothing in the agreement requires Fly Fitness to stay in the fitness business or to continue offering or selling any products or services to the franchisee if Fly Fitness chooses to assign its rights. This gives Fly Fitness considerable flexibility in the event it decides to exit the fitness industry.

This clause has significant implications for prospective franchisees. If Fly Fitness is acquired by a company outside of the fitness industry, the new owner is not obligated to continue operating Fly Fitness or providing support to franchisees. This could lead to changes in the brand, business model, or even the termination of the franchise agreement.

While this clause provides flexibility for Fly Fitness, it introduces uncertainty and risk for franchisees. It is important for potential franchisees to carefully consider this provision and assess their comfort level with the possibility of Fly Fitness exiting the fitness business. Prospective franchisees should seek clarification from Fly Fitness regarding their long-term plans and the potential impact of an assignment on the franchise system.