What is the duration of the non-compete restriction for a former employee of a Fly Fitness franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
b. In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the System, Covenantor further agrees and covenants that, upon the termination of Covenantor's employment or association with Franchisee and continuing for twenty-four (24) months thereafter, Covenantor shall not, for Covenantor 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 Business or of other franchisees in the Fly Fitness System to any competitor, by direct or indirect inducement or otherwise, and/or
(ii) participate as an owner, partner, director, officer, employee, or consultant or serve in any other managerial, operational, or supervisory capacity in any fitness or personal trainer within the within ten (10) miles of Franchisee's Territory or any Fly Fitness location.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a former employee or associate of a Fly Fitness franchisee is subject to a non-compete agreement lasting for twenty-four (24) months after the termination of their employment or association. During this 24-month period, the former employee is restricted from engaging in certain activities that could harm the Fly Fitness system.
Specifically, the non-compete agreement prohibits the former employee from diverting or attempting to divert business or customers away from the Fly Fitness outlet or other franchisees within the system. They are also barred from participating as an owner, partner, director, officer, employee, or consultant in any fitness or personal trainer business within ten (10) miles of the franchisee's territory or any Fly Fitness location.
The Fly Fitness FDD states that these restrictions are considered reasonable in terms of time, geographical area, and scope, and are designed to protect the goodwill and unique qualities of the Fly Fitness system. However, if any of the restrictions are deemed unreasonable in any legal proceeding, they may be reduced in scope or duration to be enforceable. Fly Fitness also retains the right to reduce the scope of any covenant at its discretion with written notice.