What section of the Fly To Fit Franchise Agreement covers Non-competition covenants?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Section in agreement | Disclosure document item | |
|---|---|---|---|
| MUDA: Not Applicable | |||
| t. Transfer | FA: Article 15 MUDA: Article 7 | Items 6 and 17 | |
| u. Renewal | FA: § 3.2 MUDA: Not Applicable | Item 17 | |
| v. Post-termination obligations | FA: Article 13, § 14.3 MUDA: Not Applicable | Item 17 | |
| w. Non-competition covenants | FA: § 13.2 MUDA: Not Applicable | Item 17 | |
| x. Dispute resolution | FA: Article 17 MUDA: Article 7 | Items 6 and 17 |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 23–30)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the section in the Franchise Agreement that covers non-competition covenants is § 13.2. This information is found in Item 11, which generally discusses the franchisor's assistance, advertising, computer systems, and training provided to franchisees.
Specifically, Item 11 includes a table that cross-references various obligations with their corresponding sections in the Franchise Agreement (FA) and, where applicable, the Multi-Unit Development Agreement (MUDA). The table indicates that non-competition covenants are addressed in § 13.2 of the Franchise Agreement. The MUDA is marked as 'Not Applicable' for this particular obligation, suggesting that non-competition covenants are primarily relevant to the standard Franchise Agreement rather than multi-unit development scenarios.
For a prospective Fly To Fit franchisee, this means that Section 13.2 of the Franchise Agreement will outline the restrictions on their ability to engage in competitive activities during the term of the franchise and potentially after its termination. It is important to carefully review this section to understand the scope and duration of these non-competition obligations, as they can significantly impact future business opportunities.