How does a Fly Fitness developer exercise their development rights?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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NOW, THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
1. RECITATIONS. The Recitations set out above form part of this Agreement.
2. GRANT OF DEVELOPMENT RIGHTS.
- 2.1 Grant. Franchisor hereby grants to Developer, and the Developer hereby accepts from the Franchisor, on the terms and conditions set forth in this Agreement, which includes, but is not limited to, the execution of a Franchise Agreement pursuant to Section 4.1 hereof, the right to develop, construct, open and operate one Franchised Business within the Development Area set forth in Attachment 3. 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.
- 2.2 Reservation of Rights.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer is granted rights to establish additional Fly Fitness Franchised Businesses in the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule. This is subject to the developer's full compliance with all conditions precedent to the grant of such rights. These rights must be exercised in accordance with Section 4.1 of the agreement. The development area is described in Attachment 3, and the Mandatory Development Schedule is described in Section 5.2.
The Fly Fitness agreement specifies that it is not a Franchise Agreement and does not grant the developer any right or license to operate a Franchised Business, distribute any product or service, or use the Marks. The franchisor reserves all rights to any businesses other than those specified in the agreement, within or outside of the Territory. This includes the rights to offer other products or services not offered under the Marks, other fitness concepts under the Marks or other trademarks, and services and products through any channel in the Territory other than a dedicated Fly Fitness outlet.
To exercise their development rights, a Fly Fitness developer must comply with the conditions outlined in the agreement and follow the procedures in Section 4.1. This likely involves executing Franchise Agreements for each additional Franchised Business to be established, as per the Mandatory Development Schedule. The developer must also adhere to Fly Fitness's standards and specifications for operating franchised businesses of the System. A prospective franchisee should carefully review Sections 4.1 and 5.2, as well as Attachment 3, to fully understand the conditions and procedures for exercising their development rights.