Where are the essential terms and conditions of employment defined for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor has no authority to control, either directly or indirectly, the essential terms and conditions of employment of Franchisee's employees.
Franchisee acknowledges and agrees that Franchisee, in Franchisee's sole and absolute discretion, shall determine all such essential terms and conditions of employment, which are defined in the Manual.
Franchisee specifically agrees that any training Franchisor provides for Franchisee's employees is geared to impart to those employees, with Franchisee's ultimate authority, the various procedures, protocols, systems, and operations of a Fly Fitness Franchise and in no fashion reflects any employment relationship between Franchisor and such employees.
If ever it is asserted that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agrees to assist Franchisor in defending said allegation, appearing at any venue requested by Franchisor to testify on Franchisor's behalf, participate in depositions, other appearances or preparing affidavits rejecting any assertion that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the essential terms and conditions of employment for a franchisee's employees are defined in the Manual. The FDD specifies that Fly Fitness, as the franchisor, has no direct or indirect control over these employment terms. Instead, the franchisee has the sole discretion to determine these terms and conditions.
This means that as a Fly Fitness franchisee, you are responsible for setting the wages, hours, benefits, and other employment conditions for your staff. While Fly Fitness may provide training for your employees on the operational aspects of the franchise, this training does not establish any employment relationship between Fly Fitness and your employees. You have the ultimate authority over your employees' terms of employment.
It's important to understand that if any claim arises asserting that Fly Fitness is an employer, joint employer, or co-employer of your employees, you are obligated to assist Fly Fitness in defending against that allegation. This includes providing testimony and participating in legal proceedings to refute any such claims. This underscores the importance of maintaining a clear distinction between your employees and the franchisor to avoid potential legal issues.