What action should a franchisee take if any statement in the Fly Fitness Acknowledgment Statement is incomplete or incorrect?
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.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a prospective franchisee must notify Fly Fitness immediately if any statement in the Acknowledgment Statement is incomplete or incorrect, and this notification must occur prior to signing the acknowledgement. The Acknowledgment Statement confirms that the franchisee has conducted an independent investigation into the financial, operational, and other aspects of the Fly Fitness business. It also confirms that the franchisee understands the business risks involved.
This requirement ensures that both the franchisee and Fly Fitness are on the same page regarding the franchisee's understanding of the business opportunity and associated risks. By requiring immediate notification of any inaccuracies or omissions, Fly Fitness aims to prevent misunderstandings or disputes later in the franchise relationship. This also protects the franchisor from claims of misrepresentation.
This acknowledgement does not waive any claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This means that even after signing the Acknowledgment Statement, a franchisee retains their legal rights and protections under applicable franchise laws. This provision supersedes any other term in any document executed in connection with the franchise.