What documents is Fly Fitness authorized to execute regarding the transfer or termination of Electronic Advertising and Telephone Listings under the power of attorney?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee grants Fly Fitness the authority to act as their attorney-in-fact. This means Fly Fitness can take actions and sign documents on behalf of the franchisee to fulfill the agreement's objectives. Specifically, this applies to actions necessary to manage the franchisee's online presence and telephone listings related to the Fly Fitness business. This includes the power to transfer or terminate the franchisee's rights and interests in domain names, social media accounts, website URLs, telephone numbers, and directory listings.
Upon termination of the Franchise Agreement, or even during the agreement at Fly Fitness's request, the franchisee is obligated to ensure that all internet service providers, domain name registries, search engines, and listing agencies transfer the franchisee's interest in Electronic Advertising and Telephone Listings to Fly Fitness. The franchisee must also execute any documents required to complete this transfer. If Fly Fitness does not want to accept these listings, the franchisee must direct the relevant companies to terminate them or take other actions as directed by Fly Fitness.
This power of attorney ensures that Fly Fitness maintains control over its brand's online presence and customer communications, even if a franchisee relationship ends. It allows Fly Fitness to seamlessly take over websites, social media accounts, and phone numbers to ensure consistent branding and customer service. The franchisee gives up control over these assets and must comply with Fly Fitness's decisions regarding their transfer or termination. This is a fairly standard practice in franchising, as it protects the brand's uniformity and reputation.
For a prospective franchisee, this means understanding that upon termination or at Fly Fitness's request, you will lose control over any online or telephone assets you've developed for the business. Fly Fitness has the right to take over or shut down these assets to protect its brand. It is important to factor this into your business planning, as you won't retain any equity in these marketing channels after the franchise relationship ends.