Who benefits from the goodwill generated by the Fly Fitness franchisee's use of the Intellectual Property?

According to Fly Fitness's 2024 Franchise Disclosure Document, any goodwill that arises from a franchisee's use of Fly Fitness's intellectual property and system will exclusively benefit Fly Fitness and its licensor. This means that as a franchisee operates their Fly Fitness location and builds a positive reputation, the value associated with that reputation accrues to the franchisor, not the franchisee. This is a standard practice in franchising.

Upon the expiration or termination of the franchise agreement, the franchisee will not be entitled to any monetary compensation for the goodwill they helped create during the term of their agreement. This is explicitly stated in the FDD, ensuring that franchisees understand they cannot claim any financial stake in the brand's goodwill upon exiting the system.

This aspect of the franchise agreement highlights the importance of understanding the long-term implications of investing in a Fly Fitness franchise. While franchisees benefit from using the established brand and system, they do not build equity in the brand itself. The goodwill remains the property of Fly Fitness, reinforcing the franchisor's control over the brand and its reputation.