What is the required behavior of a Fly Fitness developer to fulfill their obligations for an extension request?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ms of the Mandatory Development Schedule are reasonable and viable based upon Developer's independent investigation and analysis. Failure by Developer to adhere to the Mandatory Development Schedule (including any extensions thereof approved by Franchisor in writing pursuant to Section 5.3 below) shall constitute a material event of default under this Agreement.
- 5.3 Extension of Mandatory Development Schedule. If Developer is unable to meet the Mandatory Development Schedule for any Franchised Business, Developer may seek a onetime six (6) month extension of the Mandatory Development Schedule from Franchisor. Any request for an extension must be in writing and submitted to Franchisor at least sixty (60) days prior to the Mandatory Open Date for such outlet. Franchisor shall not unreasonably withhold consent for such reasonable extension provided that Developer has (i) submitted its extension request in a timely manner; (ii) demonstrated diligent efforts to meet the original Mandatory Open Date; and (iii) has at all times acted in good faith and is otherwise fulfilling its obligations under this Agreement.
- 5.4 Conditions to Exercise Developer's Rights.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer seeking a one-time, six-month extension of their Mandatory Development Schedule must meet specific requirements. The developer must submit a written request to Fly Fitness at least 60 days before the Mandatory Open Date for the outlet in question.
Fly Fitness will not unreasonably deny the extension if the developer has met certain conditions. These conditions include submitting the extension request in a timely manner, demonstrating diligent efforts to meet the original Mandatory Open Date, and acting in good faith while fulfilling all other obligations under the Development Agreement.
Failure to adhere to the Mandatory Development Schedule, including any approved extensions, constitutes a material breach of the Development Agreement. This could lead to default, potentially putting the developer's rights at risk. Therefore, it is crucial for developers to proactively manage their development timelines and communicate any potential delays to Fly Fitness well in advance to maintain compliance and good standing.