What happens to the Fly To Fit agreement if arbitration or litigation occurs?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- (f) Performance During Arbitration or Litigation.
Unless this Agreement has been terminated, Fly To Fit Franchise and Franchisee will comply with this Agreement and perform their respective obligations under this Agreement during the arbitration or litigation process.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, both Fly To Fit and the franchisee are obligated to continue complying with the terms of the franchise agreement and fulfill their respective duties during any arbitration or litigation process, unless the agreement has already been terminated.
This clause ensures that the franchise relationship continues as normally as possible while the dispute is being resolved. This means the franchisee must continue to operate the Fly To Fit business according to the brand standards, pay royalties, and adhere to all other contractual obligations. Similarly, Fly To Fit must continue to provide support and fulfill its obligations to the franchisee.
This requirement to continue performing under the agreement provides stability and reduces disruption during a dispute. However, it also means that a franchisee must continue to invest time and money into the business even while actively engaged in a legal dispute with Fly To Fit, which could create financial strain. Franchisees should seek legal counsel to understand their rights and obligations fully if a dispute arises.