What is the condition for a Fly Fitness developer to be granted rights to establish additional franchised businesses?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer shall be granted rights to establish additional Franchised Businessesin the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Developer's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer will be granted rights to establish additional Fly Fitness franchised businesses within their designated development area, up to the total number of outlets specified in the Mandatory Development Schedule. This is contingent upon the developer's full compliance with all conditions outlined in the agreement. These rights must be exercised in accordance with Section 4.1 of the agreement, which likely details the specific procedures and requirements for establishing each additional franchise.
To exercise these development rights, the developer must enter into a separate Franchise Agreement with Fly Fitness for each franchised business. Concurrently with signing the Multi-Unit Development Agreement, the developer must also execute Fly Fitness's current form of Franchise Agreement for the first business. For each subsequent Fly Fitness business, the developer must execute the then-current Franchise Agreement, which may differ from the initial agreement, and will be presented alongside the current Franchise Disclosure Document.
After signing the Multi-Unit Development Agreement and the initial Franchise Agreement, the developer must also satisfy or waive all conditions in Section 5.4 of the agreement. Upon executing a lease for the first franchised business, the developer must execute an additional Franchise Agreement for the second business. This process repeats for each subsequent Fly Fitness business, with the execution of a lease triggering the requirement to execute another Franchise Agreement for the next business in the Mandatory Development Schedule.
Notably, Fly Fitness developers will not receive any initial training related to each additional franchised business beyond the initial training. The developer acknowledges that the initial training is sufficient to construct, equip, open, and operate each Fly Fitness franchise in the Development Area.