Can Fly Fitness void a transfer made without its approval?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee.
Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval.
Franchisor may void any transfer made without such approval.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness retains the right to void any transfer of the franchise made without its prior written approval. The FDD emphasizes that the franchisee's rights and duties are personal, based on Fly Fitness's assessment of the franchisee's character, skills, business ability, and financial capacity. This indicates that Fly Fitness places significant importance on who operates its franchises.
This provision means that a franchisee cannot sell, assign, or transfer their franchise to another party without first obtaining Fly Fitness's consent. If a franchisee attempts to transfer the franchise without this consent, Fly Fitness has the power to nullify the transfer, potentially disrupting the unapproved transaction and creating legal complications for both the franchisee and the party to whom they attempted to transfer the franchise.
This requirement is typical in franchising, as franchisors want to ensure that new operators meet their standards and are capable of maintaining the brand's reputation and operational consistency. Prospective Fly Fitness franchisees should understand that obtaining franchisor approval is a critical step in any transfer process and that failure to do so could have serious consequences.