What must a Fly Fitness developer do upon execution of a lease for their first Franchised Business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
5.2 Mandatory Development Schedule. Subsequent to Developer's signing of this Agreement and the initial Franchise Agreement, and provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for Developer's first Franchised Business, Developer shall execute an additional Franchise Agreement for the development of the second Franchised Business to be opened under the Mandatory Development Schedule. Provided that all conditions in Section 5.4 hereof are satisfied or waived, upon the execution of a lease for each subsequent Franchised Business to be developed by Developer, Developer shall execute an additional Franchise Agreement for the development of the next Franchised Business to be opened under the Mandatory Development Schedule. Notwithstanding the foregoing, Developer shall open the Franchised Businesses in accordance with the following schedule:
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, after signing the Multi-Unit Development Agreement and the initial Franchise Agreement, a developer must execute an additional Franchise Agreement for the development of the second Franchised Business once they execute a lease for their first Franchised Business. This requirement is contingent upon satisfying or waiving all conditions outlined in Section 5.4 of the agreement.
This stipulation ensures that Fly Fitness developers promptly commit to developing their subsequent franchise locations according to the Mandatory Development Schedule. By requiring the execution of another Franchise Agreement upon securing the lease for the first location, Fly Fitness maintains control over the pace of development and ensures the developer's continued commitment to expansion.
This requirement is part of Fly Fitness's strategy to manage and maintain brand consistency and growth within the designated development area. It also allows Fly Fitness to ensure that developers are actively progressing towards fulfilling their development obligations as outlined in the Multi-Unit Development Agreement.