factual

Can Fly To Fit impose higher or different fees in the successor agreement?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (iv) Franchisee and its Owners execute Fly To Fit Franchise's then-current standard form of franchise agreement and related documents (including personal guaranty), which may be materially different than this form (including, without limitation, higher and/or different fees), except that Franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in this Section;

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, when the initial franchise agreement expires, a franchisee may enter into a successor agreement for up to two additional periods of five years each. However, this is subject to certain conditions. One of these conditions is that the franchisee executes Fly To Fit's then-current standard form of franchise agreement and related documents.

This new agreement may be materially different than the original, including the possibility of higher and/or different fees. The only exception to this is that the franchisee will not pay another initial franchise fee and will not receive more renewal or successor terms than described in the original agreement.

This means that while the franchisee can renew their agreement, Fly To Fit has the right to change the fee structure, potentially increasing costs for the franchisee upon renewal. Franchisees should be aware of this possibility and factor it into their long-term financial planning. It is common in franchising for the terms of the renewal agreement to reflect the then-current market conditions and the franchisor's evolving business model.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.