After the Fly To Fit franchise is terminated or expires, for how long are non-competition covenants in effect?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | FA: § 13.2 MUDA: none | For two years, neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within five miles of your former territory or the territory of any other Fly To Fit business operating on the date of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 35–39)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, non-competition covenants apply for a period of two years after the franchise is terminated or expires. During this time, the franchisee, any owner of the business, or any spouse of an owner is restricted from having ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor.
The restriction applies within a five-mile radius of the former Fly To Fit territory or the territory of any other Fly To Fit business operating on the date of termination. This means that after leaving the Fly To Fit system, franchisees are limited in their ability to engage with competing businesses in a defined geographical area.
These non-compete terms are fairly standard in the franchise industry to protect the brand and other franchisees from unfair competition. Prospective Fly To Fit franchisees should carefully consider the implications of this restriction, especially if they have prior experience or future aspirations in the fitness industry. It is important to understand the geographical scope and duration of the non-compete agreement before investing in a Fly To Fit franchise.