Who determines the essential terms and conditions of employment for employees of a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor has no authority to control, either directly or indirectly, the essential terms and conditions of employment of Franchisee's employees.
Franchisee acknowledges and agrees that Franchisee, in Franchisee's sole and absolute discretion, shall determine all such essential terms and conditions of employment, which are defined in the Manual.
Franchisee specifically agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Fly Fitness Franchise and in no fashion reflects any employment relationship between Franchisor and such employees.
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agrees to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf, participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee has the authority to determine the essential terms and conditions of employment for their employees. The FDD specifies that Fly Fitness, the franchisor, has no direct or indirect control over these terms. The franchisee's discretion in this matter is defined further within the Fly Fitness manual.
This arrangement means that as a Fly Fitness franchisee, you have the autonomy to set wages, benefits, and other employment conditions for your staff. However, this also means you assume full responsibility for compliance with all applicable labor laws and regulations. The training provided by Fly Fitness for franchisee's employees focuses on the brand's operational procedures, not on establishing an employment relationship between the franchisor and the employees.
Furthermore, the FDD includes a clause that protects Fly Fitness from any claims of being an employer, joint employer, or co-employer of the franchisee's staff. If such a claim arises, the franchisee is obligated to assist Fly Fitness in defending against the allegation, including providing testimony and affidavits to reject any assertion of an employment relationship between Fly Fitness and the franchisee's employees. This underscores the importance of the franchisee maintaining clear and distinct employer responsibilities.
This setup is typical in franchising, where franchisees are generally considered independent business owners. While Fly Fitness sets brand standards and operational guidelines, franchisees manage their own personnel and handle employment-related matters independently. Prospective franchisees should carefully review the Fly Fitness manual to understand the full scope of their responsibilities as an employer and ensure they are prepared to manage all aspects of employee relations and compliance.