What elements constitute the 'System' that Fly Fitness franchisees must adhere to?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
nably required to meet System standards and Franchisor's requirements as they may be modified from time to time;
- 12.1.3. Comply with all applicable governmental laws, ordinances, rules and regulations;
- 12.1.4. Maintain sufficient inventories of equipment and products as prescribed by Franchisor and employ sufficient employees as prescribed by Franchisor to operate the Franchised Business at its maximum capacity and efficiency as required by Franchisor. Franchisee may not be open for additional hours or fewer hours or fewer days without prior approval of Franchisor;
- 12.1.5. Conduct sales in accordance with Franchisor's standards and specifications. Franchisee acknowledges and accepts that Franchisee may only engage in providing fitness instruction to end-consumers. Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale. Engaging in such sales shall be a material default of this Agreement;
- 12.1.6. Employ only qualified individuals who are trained in accordance with Franchisor's standards and who will at all times conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System. Within ninety (90) days of hiring, Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) shall obtain personal training certifications issued by a nationally recognized organization approved by Franchisor. In addition to the requirements of Section 7.4 hereof, Franchisee, at Franchisee's sole expense, shall ensure that Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) attend any required continuing education or training programs to maintain their personal training certifications.
- 12.1.7. Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products, or equipment, including removal of same without payment to Franchisee, to determine whether they meet Franchisor's then-current standards, specifications, and requirements. In addition to any other remedies Franchisor may have, Franchisee shall reimburse Franchisor for Franchisor's inspection costs of any item that does not conform to the System standards and specifications;
- 12.1.8. Prominently display signs in and upon the Franchised Business location using the Marks and/or other advertising and/or signs of such nature, form, color, number,
location and size, and containing such material, as Franchisor may from time to time reasonably direct or approve in writing; and to not display in or upon the Franchised Business location or elsewhere any sign or advertising media of any kind to which Franchisor reasonably objects, including signs and advertising media which have been outdated. Upon giving Franchisee notice of its objection to same or upon termination hereof, Franchisor may at any time enter upon the Franchised Business location or elsewhere and remove any objectionable or non-approved signs or advertising media and keep or destroy same without paying therefor or without being deemed guilty of trespass or any other tort;
12.1.9. Conduct all advertising programs in a manner consistent with Franchisor's standards and specifications, in a manner satisfactory to Franchisor and that will not detract from the reputation of the System or the Marks.
12.2. Bookkeeping and Reports.
- 12.2.1. Franchisee agrees to keep and maintain complete and accurate books and records of its transactions and business operations using the accounting procedures and chart of accounts specified by Franchisor. Franchisee agrees to purchase the Computer Systems specified in Section 12.3 to maintain the records and accounts of the Franchisee to the standards of the Franchisor. Franchisee acknowledges and agrees that the financial data of Franchisee's Franchised Business (i) is owned by Franchisor, (ii) is Franchisor's Proprietary Information, (iii) may be published in franchise disclosure document(s) issued by Franchisor following the Effective Date hereof, and (iv) may be shared with other franchisees in the System.
- 12.2.2.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the 'System' includes several standards and specifications that franchisees must follow to maintain consistency and quality across all Fly Fitness locations. These standards cover various aspects of the business, including inventory management, staffing, sales practices, employee qualifications, and facility maintenance. Franchisees must maintain sufficient inventories of equipment and products and employ enough staff to operate efficiently, as prescribed by Fly Fitness. They must also conduct sales according to Fly Fitness's standards and specifications, focusing solely on providing fitness instruction to end-consumers. Franchisees are restricted from selling unapproved products or services, selling outside the approved premises or online platforms, or selling to dealers for resale.
Fly Fitness requires franchisees to employ only qualified individuals trained to the franchisor's standards, ensuring they conduct themselves competently and courteously, aligning with the brand's image. Coaches must obtain personal training certifications from nationally recognized organizations approved by Fly Fitness within 90 days of hiring and maintain these certifications through continuing education. Franchisees must allow Fly Fitness or its agents to inspect the business location, services, products, and equipment to ensure compliance with current standards.
Furthermore, franchisees must adhere to technology standards, including using required software, maintaining adequate internet access, and utilizing the electronic mail account provided by Fly Fitness. They are also responsible for the security of their computer and payment processing systems. Franchisees are restricted from establishing unauthorized websites or online listings. All advertising and promotional materials must be approved by Fly Fitness, ensuring they conform to the brand's standards. These comprehensive requirements aim to protect the brand's reputation and ensure a consistent customer experience across all Fly Fitness franchises.