Does the Fly Fitness agreement state that the developer acknowledges that the specialized training, trade secrets, and confidential information are beyond their present knowledge?
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 includes an acknowledgement from the developer regarding the specialized training, trade secrets, and confidential information they will receive. Specifically, the developer acknowledges that this information is beyond their current knowledge, training, and experience.
This acknowledgement is tied to non-competition covenants within the agreement. Fly Fitness developers recognize that the specialized training, trade secrets, and confidential information provide a competitive advantage in developing and operating franchised businesses. The agreement states that gaining access to this specialized knowledge is a primary reason for entering into the agreement.
In return for receiving this specialized training, trade secrets, and confidential information, the developer agrees to certain non-competition restrictions. These restrictions prevent the developer from engaging in activities that could harm Fly Fitness's business or goodwill, such as diverting customers to competitors or participating in similar businesses during the term of the agreement and for a period of time thereafter. This is a fairly standard practice in franchising, as franchisors want to protect their proprietary information and systems.