What acknowledgement does a Fly Fitness franchisee make regarding reliance on warranties or guarantees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- Franchisee (or Developer) has conducted an independent investigation of all aspects relating to the financial, operational, and other aspects of the business of operating the Franchised Business. Franchisee (or Developer) further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has been made to Franchisee (or Developer) by Franchisor and Franchisee (or Developer) and any and all Principals hereby waive any claim against Franchisor for any business failure Franchisee (or Developer) may experience as a franchisee (or developer) under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee acknowledges that they have conducted an independent investigation of the business and, except as set forth in the Disclosure Document, no performance representations have been made by Fly Fitness. The franchisee also waives any claims against Fly Fitness for business failure.
Specifically, the Fly Fitness franchisee acknowledges that they have performed their own due diligence regarding the financial, operational, and other aspects of operating the franchised business. This means that the franchisee is responsible for verifying any information they receive about potential revenue, expenses, or profits. Fly Fitness is only responsible for the representations explicitly stated in their Disclosure Document.
This acknowledgement is significant because it limits Fly Fitness's liability if the franchise does not perform as expected. It emphasizes that the success of the Fly Fitness venture depends largely on the franchisee's own business abilities and efforts. The franchisee is taking on the risk of business failure, provided Fly Fitness has made no misrepresentations in the FDD. However, the document also states that no acknowledgement signed by a franchisee can disclaim reliance on any statement made by the franchisor or franchise seller.