What is the required action regarding proposed transfer documents for Fly Fitness development rights?

According to Fly Fitness's 2024 Franchise Disclosure Document, if a developer wishes to transfer their development rights, they must provide all proposed transfer documents to Fly Fitness for review at least thirty (30) days before the closing of the proposed transfer. This allows Fly Fitness to assess the terms and conditions of the transfer.

Fly Fitness must grant written approval of the material terms and conditions of the transfer, including the price and terms of payment, ensuring they do not adversely affect the transferee's development obligations. However, Fly Fitness's approval does not represent a warranty of the transferee's success or the soundness of their decision to purchase the development rights.

This requirement ensures that Fly Fitness maintains control over who is developing their franchises and that the terms of the transfer are reasonable and won't negatively impact future development. It also protects Fly Fitness from potential misrepresentations made during the transfer process, as the developer agrees to indemnify Fly Fitness against any claims by the transferee, excluding those representations made by Fly Fitness in the Franchise Disclosure Document.