Can the restoration period for a Fly Fitness business be extended, and if so, by whom?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
If applicable law requires Franchisor to give notice to Franchisee prior to the expiration of the Term, this Agreement shall remain in effect on a month-to-month basis until Franchisor has given the notice required by such applicable law.
If Franchisor is not offering new Fly Fitness franchises, is in the process of revising, amending or renewing Franchisor's form of franchise agreement or disclosure document, or Franchisor is not lawfully able to offer Franchisee the then current form of Successor Franchise Agreement at the time Franchisee advises Franchisor pursuant to Paragraph 5.2 hereof that Franchisee desires to renew, Franchisor may, in Franchisor's sole discretion, (i) offer to renew this Agreement upon the same terms set forth herein for the appropriate successor term or (ii) offer to extend the Term hereof on a month-to-month basis following the expiration of the Term for as long as Franchisor deems necessary or appropriate so that Franchisor may lawfully offer the then current form of Successor Franchise Agreement.
Any timeframes specified in this Paragraph 5 shall be inclusive of any state mandated notice periods.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the term of the franchise agreement can be extended under specific circumstances, at Fly Fitness's discretion. If Fly Fitness is not offering new franchises, is revising its franchise agreement or disclosure document, or cannot lawfully offer a successor franchise agreement when the franchisee desires to renew, Fly Fitness may choose to either renew the existing agreement on the same terms or extend the term on a month-to-month basis. This extension continues as long as Fly Fitness deems necessary to lawfully offer the current form of the Successor Franchise Agreement.
This provision ensures Fly Fitness maintains flexibility in managing franchise renewals, particularly when facing legal or administrative hurdles in offering new agreements. It allows existing franchisees to continue operating under the Fly Fitness brand while the franchisor resolves any issues preventing the offer of a standard successor agreement.
For a prospective franchisee, this clause offers some assurance that their business can continue operating even if the franchise agreement is up for renewal during a period of transition or legal constraint for Fly Fitness. However, the extension is not guaranteed and is entirely at Fly Fitness's discretion, meaning a franchisee should communicate proactively with Fly Fitness regarding renewal intentions and any potential issues that might affect the renewal process. Franchisees should also be aware that any timeframes specified in this paragraph include state-mandated notice periods.