What happens to obligations pertaining to dispute resolution after the termination of a Fly To Fit franchise agreement?

According to Fly To Fit's 2024 Franchise Disclosure Document, the obligations pertaining to dispute resolution remain in effect after the termination or expiration of the Franchise Agreement. Specifically, Article 17 addresses dispute resolution, indicating that any controversy or claim between the parties will be resolved through arbitration administered by the American Arbitration Association, following its Commercial Arbitration Rules. This requirement extends beyond the active term of the agreement.

This means that even after the franchise agreement ends, both Fly To Fit and the franchisee are still bound by the arbitration terms outlined in the agreement for any disputes that arise from or relate to the agreement. This includes matters such as non-competition, confidentiality, and indemnity, which are also specified to survive termination. The location for arbitration will be the city and state where Fly To Fit's headquarters are located.

For a prospective Fly To Fit franchisee, this clause ensures that a structured method for resolving disputes remains available even after the franchise relationship concludes. It provides a framework for addressing potential conflicts without immediately resorting to court litigation, which can be more costly and time-consuming. However, franchisees should be aware that they will still need to engage in arbitration if disputes arise post-termination, and they will be subject to the rules and procedures of the American Arbitration Association.