What must the By-Laws or Operating Agreement of a Fly Fitness franchisee entity state regarding the business the franchisee may conduct?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges and accepts that Franchisee may only engage in providing fitness instruction to end-consumers.
Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale.
Engaging in such sales shall be a material default of this Agreement;
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee is primarily authorized to provide fitness instruction to end-consumers. The franchisee is specifically restricted from engaging in other sales activities using the Fly Fitness business, assets, or premises.
Specifically, a Fly Fitness franchisee cannot sell products or services that are not part of the Fly Fitness system or approved by the franchisor. They are also prohibited from selling outside the franchised business premises, with the exception of approved promotional and sales events within their territory. Furthermore, franchisees cannot sell on the internet, except for class registration and payments through Fly Fitness's approved platforms. Lastly, sales to dealers or distributors for resale are not allowed.
Engaging in any of these prohibited sales activities constitutes a material breach of the Franchise Agreement. This means Fly Fitness franchisees must ensure their business operations align strictly with providing fitness instruction and avoid unauthorized sales channels or products to remain in compliance with the agreement.