How long is the initial term of the Fly To Fit Franchise Agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement for up to 2 additional periods of 5 years each, subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Fly To Fit Franchise of the election to renew between 90 and 180 days prior to the end of the term;
- (ii) Franchisee (and its affiliates) are in compliance with this Agreement and all other agreements with Fly To Fit Franchise (or any of its affiliates) at the time of election and at the time of renewal;
- (iii) Franchisee has made or agrees to make (within a period of time acceptable to Fly To Fit Franchise) renovations and changes to the Business as Fly To Fit Franchise requires (including a Remodel, if applicable) to conform to the then-current System Standards;
- (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;
- (v) Franchisee and each Owner executes a general release (on Fly To Fit Franchise's then-standard form) of any and all claims against Fly To Fit Franchise, its affiliates, and their respective owners, officers, directors, agents and employees.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the initial term of the Franchise Agreement is 10 years, commencing on the Effective Date. This means that from the date the agreement is signed by Fly To Fit, the franchisee is granted the rights to operate a Fly To Fit business for a decade, provided they adhere to the terms and conditions outlined in the agreement.
At the end of the initial 10-year term, a franchisee has the option to enter into a successor agreement. This allows them to continue operating their Fly To Fit franchise for up to two additional periods, each lasting 5 years. However, this renewal is not automatic and is subject to certain conditions.
To renew, the franchisee must notify Fly To Fit of their election to renew within a specific timeframe, between 90 and 180 days prior to the end of the current term. They must also be in full compliance with the existing agreement and any other agreements with Fly To Fit or its affiliates, both at the time they elect to renew and at the time of the actual renewal. Furthermore, Fly To Fit may require the franchisee to make renovations or changes to the business to meet the then-current system standards, potentially including a remodel. The franchisee will also need to execute Fly To Fit's then-current standard franchise agreement, which may have materially different terms and fees, and sign a general release of claims against Fly To Fit.