What is the required action for a Fly To Fit tenant if the Franchise Agreement is terminated?

According to Fly To Fit's 2024 Franchise Disclosure Document, if the Franchise Agreement between Fly To Fit and the tenant is terminated during the term of the lease, the tenant is required to assign the lease to Fly To Fit upon written request from Fly To Fit. The landlord consents to this assignment. This clause ensures that Fly To Fit has control over the location even if the franchisee's agreement is terminated.

This provision is important for prospective Fly To Fit franchisees because it clarifies the obligations regarding the lease of the premises in the event of a franchise termination. It protects Fly To Fit's interest in maintaining the location for future operations, potentially with a new franchisee or as a company-owned store. The franchisee must be aware that they will lose control of the leased premises if their franchise agreement is terminated and Fly To Fit requests the lease assignment.

This type of clause is relatively common in franchise agreements, as franchisors often want to secure the location for continued brand presence. Franchisees should carefully consider this provision and understand the circumstances under which their agreement could be terminated, leading to the loss of their lease. It is advisable to seek legal counsel to fully understand the implications of this clause and negotiate terms that protect their interests to the extent possible.