After the transfer of interests, what obligations does the Fly Fitness Franchisee cease to have?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 19.5.2.
Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Franchisee and Principal(s) shall not, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any fitness or exercise business within ten (10) miles of the Territory or any Fly Fitness location; or (iii) seek to employ any person who is at that time employed by Franchisor or by any other System franchisee, or otherwise induce
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to the 2024 Fly Fitness Franchise Disclosure Document, upon the expiration or earlier termination of the Franchise Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, the Franchisee and Principal(s) agree to certain conditions. These include not diverting or attempting to divert any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise.
Additionally, they must not participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any fitness or exercise business within ten (10) miles of the Territory or any Fly Fitness location. They also agree not to seek to employ any person who is at that time employed by Franchisor or by any other System franchisee, or otherwise induce such person to leave his or her employment.
These post-termination obligations are common in franchising to protect the brand and prevent franchisees from using the franchisor's knowledge and resources to compete against the system after they leave. The restrictions on operating a competing business and soliciting employees are designed to safeguard Fly Fitness's market share and workforce.