Can a Fly Fitness developer interfere with the operation of the Fly Fitness system?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
d Businesses, and that gaining access to such specialized training, trade secrets and Confidential Information is, therefore, a primary reason why Developer is entering into this Agreement. In consideration for such specialized training, trade secrets, Confidential Information and rights, Developer covenants that, except as otherwise approved in writing by Franchisor:
- 8.3.1 During the term of this Agreement, Developer shall not, either directly or indirectly, for himself or herself or through, on behalf of, or in conjunction with, any person or entity (i) divert, or attempt to divert, any business or customer of any Franchised Business to be developed hereunder or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any restaurant or eatery business similar to the System ("Competitive Business"); or (iii) seek to employ any person who is at that time employed by Franchisor; or (iv) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System or (v) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the
- business of the Franchisor or any Fly Fitness franchisees or Franchisor-affiliated outlets.
- 8.3.2 Upon the expiration or earlier termination of this Agreement or upon a Transfer and continuing for twenty-four (24) months thereafter, Developer shall not, either directly or indirectly, for himself or herself or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Franchised Businesses to be developed hereunder or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; or (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any Competitive Business within ten (10) miles of the Territory or any Fly Fitness;
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 restricted from interfering with the Fly Fitness system. During the term of the agreement, the developer cannot perform any act that is injurious or prejudicial to the goodwill associated with the Fly Fitness marks and system. Specifically, the developer is prohibited from interfering with, disturbing, disrupting, decreasing, or otherwise jeopardizing the business of Fly Fitness, its franchisees, or Franchisor-affiliated outlets.
These restrictions also apply for twenty-four months after the agreement expires or terminates. During this period, the developer is prohibited from interfering with, disturbing, disrupting, decreasing, or otherwise jeopardizing the business of Fly Fitness franchisees.
These non-interference clauses are typical in franchise agreements to protect the brand's reputation, operational consistency, and franchisee relationships. A prospective Fly Fitness developer should understand these restrictions and ensure their business activities align with these requirements to avoid potential legal issues or termination of the agreement.