Can a Fly Fitness developer interfere with the System in any manner?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 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; or (iii) seek to employ any person who is at that time employed by Franchisor, or otherwise induce such person to leave his or her employment 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 Fitnessfranchisees.
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 prohibited from interfering with the business of Fly Fitness or its franchisees. During the term of the agreement, the developer cannot divert business or customers to competitors, participate in a similar business, seek to employ Fly Fitness personnel, or perform any act that could harm the goodwill associated with the Fly Fitness brand and system.
Specifically, the agreement states that a developer cannot "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." This clause aims to protect the Fly Fitness system from any actions by the developer that could negatively impact its operations, reputation, or financial performance.
After the agreement expires or terminates, these restrictions continue for 24 months. During this period, the developer is still prohibited from engaging in activities that could harm Fly Fitness, such as working for a competitor within a 10-mile radius or soliciting Fly Fitness employees. The document also states that these restrictions are considered fair and reasonable, given the skills and experience the developer possesses.
If any of these restrictions are deemed unreasonable, the agreement allows for adjustments to the time period or geographic scope to ensure enforceability. This ensures that Fly Fitness can protect its interests while also allowing the developer to pursue other opportunities.