Can a Fly Fitness developer seek to employ someone who is currently employed by the franchisor?
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.
8.4 Reasonableness of Restrictions.
Developer acknowledges and agrees that the covenants not to compete set forth in this Agreement are fair and reasonable and will not impose any undue hardship on Developer since Developer has other considerable skills, experience and education which afford Developer the opportunity to derive income from other endeavors.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to the 2024 Fly Fitness Franchise Disclosure Document, during the term of the agreement, a Fly Fitness developer is restricted from seeking to employ any person who is currently employed by the Franchisor. This restriction is in place to protect the franchisor's interests and maintain stability within the Fly Fitness organization.
This restriction means that as a Fly Fitness developer, you cannot actively recruit or attempt to hire any existing employees of the Fly Fitness franchisor. This includes direct solicitation or indirect attempts to persuade employees to leave their current positions. This measure aims to prevent the loss of valuable personnel and maintain the franchisor's operational capabilities.
After the agreement expires or terminates, or upon a transfer, for a period of 24 months, the developer is prohibited from seeking to employ anyone employed by Fly Fitness. This extended restriction ensures that the developer cannot leverage knowledge gained during the franchise term to poach employees shortly after the agreement ends. The restrictions are considered fair and reasonable because the developer has other skills and experience to derive income from other endeavors.
These non-compete and non-solicitation clauses are typical in franchising to protect the franchisor's investment in training and personnel. Prospective Fly Fitness developers should carefully consider these restrictions and their implications for future business activities and hiring practices.