Upon termination or expiration of the Fly Fitness agreement, what must the franchisee immediately cease?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon termination or expiration of this Agreement, all rights and licenses granted hereunder to Franchisee shall immediately terminate and Franchisee and each Principal, if any, shall:
18.1.1. immediately cease to operate the Franchised Business, and shall not thereafter, directly, or indirectly identify himself, herself or itself as a Fly Fitness owner, franchisee, or licensee;
18.1.2. immediately and permanently (i) cease to use the Marks, any imitation of any Mark, logos, copyrighted material, or other Intellectual Property, Confidential Information, other confidential or proprietary material or indicia of a Fly Fitness outlet, (ii) cease to use any trade name, trade or service mark or other commercial symbol that suggests a current or past association with Franchisor, Franchisor's affiliates, or the System and (iii) de-identify the Franchised Business premises.
In particular, Franchisee shall cease to use, without limitation, all signs, billboards, advertising materials, displays, stationery, forms, and any other articles, which display the Marks;
18.1.3. take such action as may be necessary to cancel any assumed name or equivalent registration that contains the Mark or any other service mark or trademark of Franchisor, and Franchisee shall furnish Franchisor with evidence of compliance with this obligation which is satisfactory to Franchisor, within five (5) days after termination or expiration of this Agreement;
18.1.4. promptly pay all sums owing to Franchisor and its affiliates.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, the franchisee must immediately cease certain activities and rights. Specifically, all rights and licenses granted to the franchisee are terminated, and the franchisee must immediately stop operating the Franchised Business. They are prohibited from identifying themselves as a Fly Fitness owner, franchisee, or licensee. This means the franchisee can no longer represent themselves as being affiliated with the Fly Fitness brand after the agreement ends.
Furthermore, the franchisee must immediately and permanently discontinue the use of Fly Fitness's trademarks, logos, copyrighted material, and other intellectual property. They must also stop using any trade name or commercial symbol that suggests an association with Fly Fitness. The franchisee is required to de-identify the franchised business premises, which includes removing all signs, advertising materials, displays, stationery, and forms that display Fly Fitness's marks. This ensures that the public is not misled into thinking the business is still part of the Fly Fitness franchise system.
In addition to ceasing operations and use of intellectual property, the franchisee must take necessary actions to cancel any assumed name registrations that contain Fly Fitness's trademarks or service marks. Evidence of compliance with this obligation must be provided to Fly Fitness within five days after the termination or expiration of the agreement. The franchisee is also obligated to promptly pay all sums owed to Fly Fitness and its affiliates. These post-termination obligations are designed to protect Fly Fitness's brand and ensure a clean break between the franchisee and the franchise system.