factual

Does the Fly To Fit disclosure document include state addenda to the agreements?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

that provision may not be enforceable.

Item 17(t) is amended to read as follows:

Only the terms of the Franchise Agreement and other related written agreements are binding (subject to applicable state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable.

WASHINGTON ADDENDUM TO DISCLOSURE DOCUMENT

(See Exhibit J for Washington Addendum to Disclosure Document and Rider to Franchise Agreement)

EXHIBIT J

STATE ADDENDA TO AGREEMENTS

ILLINOIS RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT

Limited Liability Company ("Franchisee"). This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Fly To Fit Franchise, LLC, a Delaware ("Fly To Fit Franchise") and, a 1. Definitions. in the Agreement. Capitalized terms used but not defined in this Rider have the meanings given The "Illinois Act" means the Illinois Franchise Disclosure Act of 1987. 2. Agreement provides will be resolved by arbitration. Governing Law and Jurisdiction. Notwithstanding any provision of the Agreement to the contrary, the Agreement is governed by Illinois law. The parties irrevocably submit to the jurisdiction and venue of the federal and state courts in Illinois, except for matters which the 3. notice disclosing the violation, whichever shall first expire. Limitation of Claims. No action can be maintained to enforce any liability created by the Illinois Act unless brought before the expiration of 3 years from the act or transaction constituting the violation upon which it is based, the expiration of 1 year after Franchisee become aware of facts or circumstances reasonably indicating that Franchisee may have a claim for relief in respect to conduct governed by the Illinois Act, or 90 days after delivery to the Franchisee of a written 4. Waivers Void. Notwithstanding any provision of the Agreement to the contrary, any condition, stipulation, or provision purporting to bind Franchisee to waive compliance with any provision of the Illinois Act or any other law of the State of Illinois is void. This Section shall not prevent Franchisee from entering into a settlement agreement or executing a general release regarding a potential or actual lawsuit filed under any of the provisions of this Act, nor shall it prevent the arbitration of any claim pursuant to the provisions of Title 9 of the United States Code. 5. Effective Date. This Rider is effective as of the Effective Date. Agreed to by: FLY TO FIT FRANCHISE, LLC Date:

Date:

INDIANA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT

Manual Section Number of Pages
Preface & Introduction 35
Establishing My Franchise Business 37
Personnel 48
Administrative Procedures 25
Daily Procedures 34
Selling & Marketing 22
Total Number of Pages 201
  • 1. Definitions. Capitalized terms used but not defined in this Rider have the meanings given in the Agreement. The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
  • 2. Certain Provisions Modified. Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
  • (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor. However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation. This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
  • (2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
  • (3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
  • (4) Allowing the franchisor to obtain money, goods, services, or any other benefit from any other person with whom the franchisee does business, on account of, or in relation to, the transaction between the franchisee and the other person, other than for compensation for services rendered by the franchisor, unless the benefit is promptly accounted for, and transmitted to the franchisee.
  • (5) Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by the Indiana Deceptive Franchise Practices Act or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee. This subsection (5) does not apply to arbitration before an independent arbitrator.
  • (6) Allowing for an increase in prices of goods provided by the franchisor which the franchisee had ordered for private retail consumers prior to the franchisee's receipt of an official price increase

notification. A sales contract signed by a private retail consumer shall constitute evidence of each order. Price changes applicable to new models of a product at the time of introduction of such new models shall not be considered a price increase. Price increases caused by conformity to a state or federal law, or the revaluation of the United States dollar in the case of foreign-made goods, are not subject to this subsection (6).

  • (7) Permitting unilateral termination of the franchise if such termination is without good cause or in bad faith. Good cause within the meaning of this subsection (7) includes any material violation of the franchise agreement.
  • (8) Permitting the franchisor to fail to renew a franchise without good cause or in bad faith. This chapter shall not prohibit a franchise agreement from providing that the agreement is not renewable upon expiration or that the agreement is renewable if the franchisee meets certain conditions specified in the agreement.
  • (9) Requiring a franchisee to covenant not to compete with the franchisor for a period longer than three years or in an area greater than the exclusive area granted by the franchise agreement or, in absence of such a provision in the agreement, an area of reasonable size, upon termination of or failure to renew the franchise.
  • (10) Limiting litigation brought for breach of the agreement in any manner whatsoever.
  • (11) Requiring the franchisee to participate in any (A) advertising campaign or contest; (B) promotional campaign; (C) promotional materials; or (D) display decorations or materials; at an expense to the franchisee that is indeterminate, determined by a third party, or determined by a formula, unless the franchise agreement specifies the maximum percentage of gross monthly sales or the maximum absolute sum that the franchisee may be required to pay.
  • 3. Effective Date. This Rider is effective as of the Effective Date.

Agreed to by:

| State | Effective Date | |---|---| | Florida | Pending | | New York | Pending |

MARYLAND RIDER TO FRANCHISE AGREEMENT AND MULTI-UNIT DEVELOPMENT AGREEMENT

Limited Liability Company ("Fly To Fit Franchise") and, a ("Franchisee"). 1. Capitalized terms used but not defined in this Rider have the meanings given Definitions. in the Agreement. The "Maryland Franchise Law" means the Maryland Franchise Registration and Disclosure Law, Business Regulation Article, §14-206, Annotated Code of Maryland. 2. Releases, Estoppels and Waivers of Liability. All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Law. 3. which provides for a period of Statute of Limitations. Any provision of the Agreement limitations for causes of action shall not apply to causes of action under the Maryland Franchise an action under such law within three years after the grant of the franchise. Law, Business Regulation Article, §14-227, Annotated Code of Maryland. Franchisee must bring 4. Jurisdiction. Franchisee does not waive its right Maryland. to file a lawsuit alleging a cause of action arising under the Maryland Franchise Law in any court of competent jurisdiction in the State of 5. This Rider is effective as of the Effective Date. Effective Date.

Source: Item 23 — RECEIPTS (FDD pages 44–134)

What This Means (2024 FDD)

Yes, the 2024 Fly To Fit Franchise Disclosure Document includes state addenda to the agreements. Specifically, Exhibit J of the FDD is titled "STATE ADDENDA TO AGREEMENTS." The document includes addenda for Illinois, Indiana, Rhode Island, Washington, North Dakota, Maryland and Hawaii.

These addenda modify the franchise agreement to comply with specific state laws. For example, the Illinois Rider addresses governing law, jurisdiction, limitation of claims, and waivers. The Washington Addendum discusses the state's Franchise Investment Protection Act and its potential impact on the franchise agreement, particularly regarding termination and renewal. The North Dakota Rider covers restrictive covenants, arbitration proceedings, forum restrictions, liquidated damages, applicable laws, and waivers.

For a prospective Fly To Fit franchisee, this means the standard franchise agreement is not uniformly applied across all states. Franchisees need to carefully review the addendum for their specific state to understand how their rights and obligations may differ from those in other states. This is especially important concerning dispute resolution, termination, and the enforceability of certain clauses in the franchise agreement. Consulting with an attorney familiar with franchise law in their state is advisable to fully understand the implications of these addenda.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.