What conditions must be satisfied before Fly Fitness grants a developer the right to develop an additional Franchised Business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.4 Conditions to Exercise Developer's Rights. All of the following conditions must be satisfied or waived, in Franchisor's sole discretion, before Franchisor grants Developer the right to develop an additional Franchised Business in accordance with Section 5.1 hereof and pursuant to a Franchise Agreement:
- 5.4.1 Developer shall (i) request Franchisor's then-current Franchise Disclosure
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, before Fly Fitness grants a developer the right to develop an additional franchised business, several conditions must be met or waived by Fly Fitness. These conditions are outlined in Section 5.4 of the agreement.
First, the developer must request Fly Fitness's then-current Franchise Disclosure Document. This ensures the developer is aware of any updated terms or changes to the franchise agreement. The developer must also provide Fly Fitness with a copy of the proposed lease for the new franchised business location. This allows Fly Fitness to assess the suitability of the location.
Additionally, the developer needs to deliver to Fly Fitness a copy of the Franchise Agreement for the additional Franchised Business, fully executed. Fly Fitness also requires evidence that the developer has sufficient capital to fund the build-out and operation of the additional Fly Fitness outlet. Finally, the developer must be in full compliance with the existing Multi-Unit Development Agreement and not be in default. These conditions ensure that the developer is financially stable, committed to the Fly Fitness brand, and capable of successfully operating additional locations.