In the event of a government investigation, what assistance is a Fly Fitness franchisee obligated to provide to the franchisor regarding employee status?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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, a franchisee has specific obligations to assist Fly Fitness if the issue of employer status arises concerning the franchisee's employees. If a government investigation or any other type of action asserts that Fly Fitness is the employer, joint employer, or co-employer of any of the franchisee's employees, the franchisee must assist Fly Fitness in defending against this allegation.
This assistance includes appearing at any venue requested by Fly Fitness to provide testimony on their behalf. The franchisee must also participate in depositions and other appearances, as well as prepare affidavits. The purpose of these actions is to reject any claim that Fly Fitness is the employer, joint employer, or co-employer of the franchisee's employees.
This requirement is significant because it places a legal obligation on the franchisee to actively support Fly Fitness's position regarding employment status. Failing to provide the required assistance could potentially lead to legal repercussions for the franchisee, as it would be a breach of the franchise agreement. Prospective franchisees should understand this obligation and be prepared to fulfill it if such a situation arises.