What documents is a Fly Fitness franchisee allowed to retain copies of after termination of the franchise agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
rademarks, including, the registered trademark "Fly Fitness" and design mark, and certain | | | proprietary products, services, promotions, | and methods (the "System") for the establishment and | | operation of Franchised Business outlets; | | WHEREAS, in connection with his or her duties, it will be necessary for Covenantor to have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Fly Fitness operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information").
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
WHEREAS, Franchisee has acknowledged the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and
WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential Information constitutes independent valuable consideration for the representations, promises and covenants made by Covenantor herein.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her employment by or association with Franchisee in connection with the operation of a Franchised Business under the Franchise Agreement.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall not at any time disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees of Franchisee for training and assisting such
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, it appears that the document does not explicitly state which documents a franchisee is allowed to retain after the termination of the franchise agreement. However, the FDD does state that upon termination of the Franchise Agreement, the franchisee must cease using Fly Fitness's intellectual property, confidential information, and trademarks. The franchisee is also obligated to return any materials containing confidential information to Fly Fitness.
Given these obligations, it is implied that a franchisee would not be entitled to retain copies of documents containing confidential information, operational manuals, or materials that display Fly Fitness's trademarks. These items are considered proprietary to the Fly Fitness system, and their use is licensed only during the term of the franchise agreement.
To fully understand what documents a franchisee can retain post-termination, it is essential to seek clarification from Fly Fitness. A prospective franchisee should ask Fly Fitness to provide a comprehensive list of documents that can be kept, ensuring that this list is included as an addendum to the franchise agreement. This will help avoid potential disputes and ensure compliance with the franchisor's requirements after the agreement ends.
Understanding document retention policies is crucial for any franchisee, as it directly impacts their ability to operate independently or transition to a new business venture after the franchise term. Therefore, thorough due diligence and clear communication with Fly Fitness are necessary to protect the franchisee's interests.