Well, the way I read it, it says both:The link is a sample FBO agreement. https://www.mdt.mt.gov/aviation/docs/sample-seeley-fbo-lease.pdf
It doesn’t say the independent CFI can’t instruct at the airport, but it does say the airport won’t let another to provide services under more favorable terms. The independent CFI, AP, ect doesn’t meet the insurance and indemnification requirements placed on the FBO.
3. It will not permit the conduct of any aeronautical endeavor or activity at the Airport except under an approved lease and operating agreement.
Depends a lot on the definition of aeronautical endeavor or activity. Is flight instruction (from an independent CFI) an aeronautical endeavor or activity? The agreement doesn't define what that is, but I could easily see the FBO making the argument that instruction falls under it. Then the independent CFI would have to first negotiate an agreement with the airport (which is not realistically going to happen).
- Martin