How does a Fly Fitness developer derive the rights to use the System and Marks?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 No License to System and Marks.
Developer expressly acknowledges that this Agreement is not a Franchise Agreement and does not grant to Developer any right or license to operate a Franchised Business, distribute any product or service, or use the Marks.
This Agreement sets forth conditions which, if fully satisfied, confer upon Developer the rights to enter a Franchise Agreement with Franchisor to establish one or more Franchised Businesses in the Development Area only.
Developer's rights to open and operate a Franchised Business and use the System and Marks shall be derived only through the execution of a Franchise Agreement for each Franchised Business to be established in the Development Area.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer does not automatically gain the right to operate a franchised business or use the Fly Fitness System and Marks through the Development Agreement alone. The Development Agreement outlines the conditions that, if met, allow the developer to enter into a Franchise Agreement with Fly Fitness to establish one or more franchised businesses within a specific Development Area.
The developer's rights to open and operate a franchised Fly Fitness business and utilize the System and Marks are only granted through the execution of a separate Franchise Agreement for each business they intend to establish within the Development Area. The Development Agreement itself is not a franchise agreement and does not grant any rights to operate a business or use the Marks.
In essence, the Development Agreement sets the stage for future franchise agreements, contingent upon the developer fulfilling their obligations. Only upon signing an individual Franchise Agreement for each location does the developer secure the rights to use the Fly Fitness System and Marks for that specific franchised business.