When transferring a Fly To Fit franchise, what must all owners of the proposed assignee provide?

According to Fly To Fit's 2024 Franchise Disclosure Document, when transferring a franchise, all owners of the proposed assignee must provide a guaranty in accordance with Section 2.5 of the franchise agreement. This requirement is one of several conditions that Fly To Fit may impose when granting consent to a transfer.

This means that the owners of the entity taking over the Fly To Fit franchise must provide a personal guarantee, ensuring they are personally liable for the financial obligations of the franchise. This is a common practice in franchising, as it provides the franchisor with additional security and assurance that the franchisee will meet its financial responsibilities.

In addition to the guaranty, the proposed assignee and its owners must complete Fly To Fit's franchise application processes, meet the then-applicable standards for new franchisees, and be approved by Fly To Fit as franchisees. The proposed assignee and its owners and employees must also undergo such training as Fly To Fit may require. The franchisee, its owners, and the transferee and its owners must execute a general release of Fly To Fit in a form satisfactory to Fly To Fit.