What constitutes 'good cause' for Fly To Fit to terminate a franchise agreement?

According to Fly To Fit's 2024 Franchise Disclosure Document, 'good cause' for termination includes any material violation of the franchise agreement. This definition is provided within the context of restrictions against unilateral termination without good cause or in bad faith.

This means that Fly To Fit can terminate the franchise agreement if the franchisee commits a significant breach of the agreement's terms. The term 'material violation' is somewhat broad, but it generally refers to a serious breach that goes to the core of the agreement, such as failure to pay royalties, violation of brand standards, or engaging in activities that harm the brand's reputation. Franchisees should carefully review the franchise agreement to understand what specific actions or omissions could be considered a material violation.

It is important to note that the FDD also mentions that Washington state law (RCW 19.100.180) may supersede the franchise agreement regarding termination and renewal. Therefore, franchisees operating in Washington should be aware of their rights under Washington's Franchise Investment Protection Act, which may provide additional protections against termination without good cause. Similarly, franchisees should be aware of any applicable state laws that may affect the enforceability of termination provisions.