factual

Which sections of the Fly Fitness Franchise Agreement are amended by this FDD?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

nchise Act within three (3) years after the cause of action accrues. You cannot consent to us obtaining injunctive relief. We may seek injunctive relief. See Minnesota Rules 2860.4400(J),

AMENDMENT TO THE FLY FITNESS FRANCHISE, L.L.C. FRANCHISE AGREEMENT REQUIRED BY THE STATE OF MINNESOTA

In recognition of the requirements of the Minnesota Statutes Chapter 80C, the parties to the attached Fly Fitness Franchise Agreement (the "Franchise Agreement") agree as follows:

    1. Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee's assent to a release other than as part of a voluntary settlement of disputes. To the extent of any inconsistencies with the Minnesota Rules requirement contained in Sections 5.2.5 or 16.3.6 of the Franchise Agreement, such inconsistent provisions are hereby deleted.
    1. To the extent of any inconsistencies, Section 5.1.1 of the Franchise Agreement is hereby amended to state:

"Except in certain specified cases as set forth in Minn. Stat. § 80C.14 subd. 4, Franchisor will give Franchisee 180 days' notice for non-renewal of the Franchise Agreement."

    1. To the extent of any inconsistencies, Section 6.4 of the Franchise Agreement is hereby amended to state that the non-sufficient funds fee is Thirty Dollars ($30.00) per occurrence.
    1. To the extent of any inconsistencies, Sections 17.1 through 17.3 of the Franchise Agreement are hereby amended to state:

"Except in certain specified cases as set forth in Minn. Stat. § 80C.14 subd. 3, Franchisor will give Franchisee 90 days notice of termination (with 60 days to cure)".

  1. To the extent of any inconsistencies, Article 20, Dispute Resolution, of the Franchise Agreement is hereby amended to state:

"Franchisor cannot require Franchisee to: (i) conduct litigation outside Minnesota, (ii) waive a jury trial, or (iii) consent to liquidated damages, termination penalties or judgment notes. Nothing in this Franchise Agreement shall abrogate or reduce (1) any of Franchisee's rights as provided for in Minn. Stat. Chapter 80C or (2) Franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. Franchisee cannot consent to Franchisor obtaining injunctive relief. Franchisor may seek injunctive relief."

  1. Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Minnesota Statutes Chapter 80C are met independently without reference to this Amendment.

-Signature page immediately follows-

The parties hereto have duly executed this Minnesota Amendment to the Franchise Agreement on the same date as that on which the Franchise Agreement was executed.

FLY FITNESS FRANCHISE, L.L.C.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to the 2024 Fly Fitness Franchise Disclosure Document, several sections of the Fly Fitness Franchise Agreement are amended specifically for franchisees in Minnesota, due to the requirements of Minnesota Statutes Chapter 80C.

Specifically, Section 5.2.5 and 16.3.6 are amended to remove any inconsistencies with Minnesota Rules 2860.4400(D), which prohibits franchisors from requiring a franchisee's assent to a release except as part of a voluntary settlement of disputes. Section 5.1.1 is amended to state that Fly Fitness will give franchisees 180 days' notice for non-renewal of the Franchise Agreement, except in certain specified cases as set forth in Minn. Stat. § 80C.14 subd. 4.

Additionally, Section 6.4 is amended to state that the non-sufficient funds fee is $30.00 per occurrence. Sections 17.1 through 17.3 are amended to state that Fly Fitness will give franchisees 90 days notice of termination (with 60 days to cure), except in certain specified cases as set forth in Minn. Stat. § 80C.14 subd. 3. Finally, Article 20, Dispute Resolution, is amended without specifying the changes.

Item 6 and Item 17 are also amended for franchisees in Minnesota. Item 6, Non-Sufficient Funds Fee, is amended to state that the Non-Sufficient Funds Fee is $30.00 per occurrence, pursuant to Minn. Stat. § 604.113. Item 17 is amended to include several stipulations based on Minnesota statutes and rules, including prohibitions on requiring litigation outside Minnesota, waiver of a jury trial, consent to liquidated damages, and general releases. It also specifies notice periods for termination and non-renewal, and restrictions on unreasonably withholding consent to a transfer.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.