Does the Fly Fitness agreement state that access to specialized training, trade secrets, and confidential information is a primary reason for entering the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 8.3 Noncompetition Covenants. Developer acknowledges that, pursuant to this Agreement, Developer will receive valuable training, trade secrets and Confidential Information of the System that are beyond the present knowledge, training, and experience of Developer. Developer acknowledges that such specialized training, trade secrets and Confidential Information provide a competitive advantage and will be valuable to him or her in the development and operation of Franchised Businesses, and that gaining access to such specialized training, trade secrets and Confidential Information is, therefore, a primary reason why Developer is entering into this Agreement. In consideration for such specialized training, trade secrets, Confidential Information and rights, Developer covenants that, except as otherwise approved in writing by Franchisor:
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the agreement explicitly states that access to specialized training, trade secrets, and confidential information is a primary reason for a developer (franchisee) to enter into the agreement. The document highlights that the developer acknowledges receiving valuable training, trade secrets, and confidential information of the Fly Fitness system, which are beyond their current knowledge and experience.
Fly Fitness emphasizes that this specialized training, trade secrets, and confidential information provide a competitive advantage and are valuable for developing and operating franchised businesses. Therefore, gaining access to these resources is a key motivator for the developer to become a Fly Fitness franchisee.
This acknowledgement is part of the consideration for the non-competition covenants within the agreement. The franchisee agrees to certain restrictions during and after the term of the agreement in exchange for the specialized training, trade secrets, confidential information, and rights granted by Fly Fitness.