According to the Fly Fitness franchise agreement, what is included in the System?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale.
Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System.
Franchisor has established a website that provides information about the System and the services and products offered by the Fly Fitness System (the "Website").
Franchisee specifically agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Fly Fitness Franchise and in no fashion reflects any employment relationship between Franchisor and such employees.
Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
WHEREAS, Franchisee desires to enter into a franchise agreement with Franchisor for a Fly Fitness business ("Franchise Agreement") which will allow Franchisee to conduct internet-based advertising, maintain social media accounts, and use telephone listings linked to the Fly Fitness brand.
During the term of this Agreement, Franchisee and Principal(s) shall not, either directly or indirectly, for themselves or through, on behalf of, or in conjunction with, any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any fitness or exercise business similar to the System; or (iii) seek to employ any person who is at that time employed by Franchisor or by any other System franchisee, or otherwise induce such person to leave his or her employment; or (iv) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (v) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Fly Fitness franchisees or Franchisor-affiliated outlets.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, the franchise agreement outlines several components and requirements related to the Fly Fitness System. Franchisees are restricted from selling products or services that are not part of the Fly Fitness System or approved by Fly Fitness. They are also required to use software that Fly Fitness develops or acquires for use in the System and must maintain adequate hardware and software to access the internet at the speed Fly Fitness requires. Fly Fitness retains sole discretion and control over the website that provides information about the Fly Fitness System.
Fly Fitness provides training for the franchisee's employees, which is geared to impart the procedures, protocols, systems, and operations of a Fly Fitness franchise. Franchisees must ensure their coaches obtain personal training certifications from a nationally recognized organization approved by Fly Fitness within 90 days of hiring and attend continuing education or training programs to maintain these certifications. Franchisees must adhere to Fly Fitness's standards when controlling the day-to-day operations of the franchised business.
The franchise agreement grants the franchisee the right to operate the franchised business at a single location within a specified territory. Fly Fitness reserves the rights to offer other products or services not offered under the Fly Fitness marks, other fitness concepts under the marks or other trademarks, and services and products through any channel other than a dedicated Fly Fitness outlet. The franchisee may conduct internet-based advertising, maintain social media accounts, and use telephone listings linked to the Fly Fitness brand.
During the term of the agreement, franchisees are prohibited from diverting business or customers of the franchised business or other franchisees in the System to any competitor. They cannot participate in any fitness or exercise business similar to the System or seek to employ anyone employed by Fly Fitness or any other System franchisee. Franchisees must not perform any act injurious or prejudicial to the goodwill associated with the marks and the System or interfere with the business of Fly Fitness or any Fly Fitness franchisees.