What happens if I am in default of the Fly To Fit franchise agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
If we and you cannot agree on a site, you will be unable to comply with your obligation to develop and open the franchise by the deadline stated in the franchise agreement.
Unless we agree to extend the deadline, you will be in default and we may terminate your franchise agreement.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if you and Fly To Fit cannot agree on a site for your franchise, you will be unable to meet your obligation to develop and open the franchise by the deadline stated in the franchise agreement. Unless Fly To Fit agrees to extend the deadline, you will be in default, and Fly To Fit may terminate your franchise agreement.
Additionally, if a Fly To Fit franchisee is in default under its franchise agreement, they will not be able to vote in a local or regional advertising cooperative. The amount a franchisee must contribute to the cooperative will be determined by vote of the members, but not less than 1% and not more than 5% of gross sales.
Furthermore, should you fail to pass the test or complete the initial training, Fly To Fit has the right to terminate the franchise agreement with no refund of the initial franchise fee.