What is Attachment 3 to the Fly Fitness Franchise Agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, Attachment 3 to the Franchise Agreement designates the territory granted to the franchisee. The agreement grants the franchisee the right to operate a Fly Fitness franchise at a single location within this defined territory. Fly Fitness agrees not to operate or authorize other franchisees to operate a Fly Fitness outlet within the franchisee's territory, using the same marks, as long as the franchisee is not in default of the agreement.

However, Fly Fitness retains the right to open, operate, or franchise Fly Fitness locations bordering the franchisee's territory. The franchisee is restricted from soliciting customers outside of their designated territory and from using alternative distribution methods, as specified in the agreement. Fly Fitness also reserves the right to offer other products, services, or fitness concepts under different trademarks through alternative channels like schools, retail outlets, or the internet, without compensating the franchisee for sales made through these channels within the franchisee's territory.

This territorial agreement is valid for the duration of the franchise term, which is ten years from the opening date, unless terminated earlier. The franchisee's rights are subject to Fly Fitness's rights to expand and utilize alternative distribution channels, even within the franchisee's territory. Therefore, while the franchisee is granted an exclusive territory for a traditional Fly Fitness outlet, Fly Fitness retains considerable freedom to operate and franchise other businesses and channels within or adjacent to that territory.