Are a Fly To Fit franchisee's payment obligations dependent on Fly To Fit Franchise's performance?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- (g) Obligations Independent; No Set-Off. The obligations of Franchisee to pay to Fly To Fit Franchise any fees or amounts described in this Agreement are not dependent on Fly To Fit Franchise's performance and are independent covenants by Franchisee. Franchisee shall make all such payments without offset or deduction.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee's obligation to make payments to Fly To Fit is not dependent on Fly To Fit's performance. The agreement specifies that the franchisee's payment obligations are independent covenants. This means that the franchisee is required to make all payments without any offset or deduction, regardless of Fly To Fit's performance.
This clause is standard in franchise agreements. It ensures that Fly To Fit receives the royalty fees, marketing contributions, and other payments necessary to support the franchise system, irrespective of any issues a franchisee might perceive with the franchisor's services or support.
For a prospective Fly To Fit franchisee, this means they cannot withhold payments or deduct amounts owed to Fly To Fit based on their satisfaction (or dissatisfaction) with Fly To Fit's performance. Failure to pay can result in late fees of $100 plus interest on the unpaid amount at a rate of 18% per year, as well as potential legal action and associated costs of collection, including attorney fees.