What is the consequence if a party does not comply with the Fly To Fit agreement during arbitration or litigation?

According to Fly To Fit's 2024 Franchise Disclosure Document, both Fly To Fit and the franchisee are obligated to continue performing their duties under the franchise agreement during any arbitration or litigation, unless the agreement has been terminated. This means that regardless of any ongoing disputes, the franchisee must continue to operate the business according to Fly To Fit's standards and pay any required fees, while Fly To Fit must continue to provide support and uphold its obligations as well.

This requirement ensures business continuity and maintains the integrity of the Fly To Fit brand during dispute resolution. For a franchisee, this means they cannot simply cease operations or withhold payments while waiting for an arbitration or litigation outcome. Failure to comply with the agreement during this period could be considered a breach of contract, potentially leading to further legal action or termination of the franchise agreement.

It is important for prospective Fly To Fit franchisees to understand this obligation, as it has significant financial and operational implications. Franchisees should factor in the potential costs and challenges of maintaining full compliance during a dispute, which could include legal fees, continued royalty payments, and adherence to operational standards. This clause underscores the importance of attempting to resolve disputes amicably and efficiently to minimize the period during which both parties must continue to perform under potentially contentious circumstances.