Under the Fly Fitness agreement, who is responsible for ensuring the Covenantor acts as required?

According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for ensuring the Covenantor adheres to the agreement. Specifically, the franchisee must ensure that the Covenantor fulfills all obligations as outlined in the franchise agreement.

This means that if a Fly Fitness franchisee hires someone who is required to sign a confidentiality or non-compete agreement (the Covenantor), it is the franchisee's responsibility to make sure that person complies with those agreements. This includes ensuring the Covenantor does not disclose confidential information or engage in activities that violate the non-compete clauses, such as working for a competing fitness business within the restricted area and timeframe.

The franchisee's responsibility extends to enforcing the agreement against the Covenantor if a breach occurs. Fly Fitness outlines that the franchisee is obligated to enforce the provisions of the agreement and is entitled to seek legal remedies such as injunctions and specific performance, without needing to demonstrate actual harm or provide a bond. This places a significant burden on the franchisee to actively monitor and take action against any potential breaches by the Covenantor.

This requirement is fairly standard in franchising, as the franchisee is the direct employer or contracting party with the Covenantor. It is crucial for prospective Fly Fitness franchisees to understand this obligation and have systems in place to monitor compliance and address any potential violations of the agreement by their employees or associates.