Does the Fly Fitness agreement state that the developer will receive trade secrets?
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 states that the developer will receive trade secrets. Specifically, the document acknowledges that the developer will receive valuable training, trade secrets, and confidential information that go 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 the development and operation of franchised businesses. The agreement explicitly states that gaining access to these resources is a primary reason why the developer is entering into the agreement.
In return for receiving this specialized training, trade secrets, and confidential information, the developer agrees to certain non-competition covenants. These covenants restrict the developer from engaging in activities that could harm the Fly Fitness system, such as diverting business to competitors or participating in similar businesses during the term of the agreement and for a period of time after its termination.