Does Fly To Fit Franchise need the franchisee's consent to undergo a change in ownership?

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit does not need the franchisee's consent to undergo a change in ownership. Specifically, Fly To Fit can transfer the Franchise Agreement or undergo a change in ownership without the franchisee's approval.

This clause gives Fly To Fit significant flexibility in structuring its business and potentially selling the franchise system. A prospective franchisee should understand that they have no control over who ultimately owns or controls the Fly To Fit franchise company. This is a fairly standard practice in franchising, as it allows the franchisor to adapt to changing market conditions and business opportunities.

However, the franchisee's ability to transfer the agreement is restricted. The franchisee must provide Fly To Fit with at least 60 days' notice and obtain Fly To Fit's consent before any transfer. Fly To Fit may impose conditions on the transfer, including a $10,000 transfer fee plus broker fees and other costs. The assignee must also meet Fly To Fit's standards for new franchisees and execute the then-current franchise agreement, which may have materially different provisions.

These conditions ensure that Fly To Fit maintains control over who becomes a franchisee and that the new franchisee meets their standards. The transfer conditions also protect Fly To Fit's interests by requiring the franchisee to be in good standing and to release Fly To Fit from any liability. The right of first refusal further allows Fly To Fit to buy back the franchise before it is sold to a third party.