After signing the Fly Fitness Development Agreement and the initial Franchise Agreement, what must the Developer do upon executing a lease for their first Franchised Business, assuming all conditions in Section 5.4 are satisfied or waived?

According to Fly Fitness's 2024 Franchise Disclosure Document, after signing the Development Agreement and the initial Franchise Agreement, a Developer who has satisfied or had waived the conditions in Section 5.4, must execute an additional Franchise Agreement for the development of the second Fly Fitness location to be opened under the Mandatory Development Schedule upon executing a lease for their first Franchised Business.

This means that the developer is obligated to commit to developing the second Fly Fitness franchise location once they secure a lease for their first location. This commitment is formalized through the execution of another Franchise Agreement. This requirement ensures that the developer is actively progressing towards fulfilling the terms of the Mandatory Development Schedule.

This condition is in place to ensure the developer is serious about expanding the Fly Fitness brand and adhering to the agreed-upon development timeline. It protects Fly Fitness's interests by preventing developers from securing territories without actively pursuing the establishment of multiple franchise locations. The developer should be prepared to take on the obligations of a second franchise location promptly after securing the first.