How many additional renewal periods can a Fly To Fit franchisee enter into?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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, a franchisee can enter into up to two additional renewal periods. Each of these renewal periods has a term of 5 years. This means that after the initial 10-year term of the franchise agreement, a franchisee could potentially operate under the Fly To Fit brand for an additional 10 years through these renewals.
However, these renewal opportunities are not automatic. To be eligible for renewal, the Fly To Fit franchisee must meet several conditions. These include notifying Fly To Fit of their intent to renew within a specific timeframe (90 to 180 days before the end of the current term), being in full compliance with all agreements, and making any required renovations to keep the business up to current System Standards.
Additionally, the franchisee must sign Fly To Fit's then-current franchise agreement, which may have different terms and fees than the original agreement. The franchisee must also execute a general release of claims against Fly To Fit. These conditions ensure that only franchisees in good standing and those willing to adapt to the evolving standards of the Fly To Fit system are granted the opportunity to renew their franchise agreement.