For how long does the non-competition covenant apply after the Fly To Fit franchise is terminated or expires?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| r. Non-competition covenants after the franchise is terminated or expires | FA: § 13.2 MUDA: none | For two years, neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by a competitor located within five miles of your former territory or the territory of any other Fly To Fit business operating on the date of termination. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 35–39)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for a period of two years after the franchise is terminated or expires. This restriction applies to the franchisee, any owner of the business, and any spouse of an owner.
During this two-year period, these individuals are prohibited from having ownership interest in, lending money or providing financial assistance to, providing services to, or being employed by a competitor. This non-compete restriction is limited geographically to a five-mile radius of the former Fly To Fit territory or the territory of any other Fly To Fit business operating on the date of termination.
This means that after leaving the Fly To Fit system, franchisees and related parties must avoid any competitive activities within the specified area for two years. This could impact their ability to start a similar business or work for a competitor in the fitness industry. Franchisees should carefully consider this restriction and its potential impact on their future career options before investing in a Fly To Fit franchise.