Does Fly Fitness assume liability for expenses incurred by the franchisee due to required modifications?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
no ownership or other proprietary rights to Franchisor's website and Franchisee will lose all rights to such link to Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7. In addition to the requirements of Section 6.6, Franchisee shall pay all fees, whether to Franchisor or to third party vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, the costs of computer hardware and software and applications, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
- 12.3.8. Franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein. Franchisee, at Franchisee's sole cost and expense, shall implement all computer hardware, software, and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee's computer and payment processing systems and the data stored therein from viruses, malware, privacy breaches or other unauthorized access.
- 12.4. Safety and Security of Premises. All matters of safety and security are within Franchisee's discretion and control, and Franchisee is solely responsible for the safety and security of the Franchised Business location for Franchisee, Franchisee's personnel, customers, agents, and the general public. Franchisee shall train all employees on, and comply with all best practices for, delivery of fitness instruction. Franchisee's indemnification obligations set forth in Section 15.6 hereof shall apply to any claims made against Franchisor regarding safety or security.
- 12.5. Prices. Subject to applicable law, Franchisor may recommend or set maximum prices for services and products offered by Franchisee, which may vary depending on geographic and other market conditions.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness does not assume liability for expenses incurred due to required modifications. In fact, the opposite is true: Fly Fitness franchisees are responsible for covering various costs and expenses related to operating the franchise.
Specifically, Fly Fitness franchisees are required to pay for technology-related expenses, including computer hardware, software, applications, installation costs, recurring fees for software and digital menu displays, internet access, license fees, help desk fees, and user-based fees. Additionally, if Fly Fitness decides to substitute different marks for use in identifying the system and the franchised business, the franchisee is responsible for any expenses, losses, or damages sustained as a result of these changes. Fly Fitness will not be liable for these costs, and the franchisee agrees not to take legal action against Fly Fitness for these expenses.
Furthermore, the franchisee is responsible for maintaining the security and integrity of the computer and payment processing systems used in the franchised business, as well as the customer and other data stored within those systems. This includes any costs associated with ensuring data protection and compliance with relevant regulations. The franchisee is also responsible for ensuring that their coaches obtain and maintain personal training certifications, including covering the costs of continuing education or training programs required to maintain these certifications. These stipulations highlight the franchisee's broad responsibility for covering costs associated with maintaining and updating various aspects of the Fly Fitness business, with Fly Fitness explicitly disclaiming liability for such expenses.