What remedy do Franchisee and Principals consent to in the event of violating the non-compete terms with Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and Principal(s) acknowledge that a violation of the covenants not to compete contained in this Agreement would result in immediate and irreparable injury to Franchisor for which no adequate remedy at law will be available.
Accordingly, Franchisee and Principal(s) hereby consent to the entry of an injunction prohibiting any conduct by Franchisee or any Principal in violation of the terms of the covenants not to compete set forth in this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, both the franchisee and their principals consent to injunctive relief in the event of violating the non-compete terms outlined in the franchise agreement. This means that Fly Fitness can seek a court order to immediately stop the franchisee or their principals from engaging in any activity that breaches the non-compete agreement.
This consent is significant because it streamlines the process for Fly Fitness to enforce the non-compete provisions. Typically, obtaining an injunction requires demonstrating that irreparable harm will occur if the prohibited activity continues. By agreeing to injunctive relief upfront, the franchisee and principals acknowledge that a breach of the non-compete agreement would cause immediate and irreparable harm to Fly Fitness.
For a prospective Fly Fitness franchisee, this means they and their principals must fully understand and intend to comply with the non-compete terms. Violation can lead to immediate legal action and a court order preventing them from engaging in competitive activities, regardless of whether actual damages have been fully calculated. This is a standard practice in franchising to protect the brand and market share of the franchise system.