In the event of a Fly Fitness Operating Principal or General Manager replacement, what qualifications must the replacement meet?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
her business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
- (iii) Satisfy the training requirements set forth in Article 7.
- 11.4.4 If either the Operating Principal or the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the Operating Principal or the General Manager, as the case may be, ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor). Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement. Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement. Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements. Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
- 11.5. Legal Compliance. Franchisee shall comply with all federal, state, and local laws, rules and regulations and shall timely obtain any and all permits, certificates, or licenses necessary for the full and proper conduct of the Franchised Business. Such laws, rules and regulations shall include, without limitation, licenses to do business, health club act compliance, fictitious name registrations, sales and other tax permits, fire and police department clearances, Americans With Disability Act compliance, health permits, certificates of occupancy, any permits, certificates or licenses required by any environmental federal, state or local law, rule or regulation and any other requirement, rule, law or regulation of any federal, state or local jurisdiction.
- 11.6. Claims and Potential Claims. Franchisee shall notify Franchisor in writing within three (3) days of any incident or injury that could lead to, or the actual commencement of any action, suit or proceeding and of the issuance of any order, writ, injunction, award or decree of any court, agency, or other governmental instrumentality, which in any way relating to or affecting the operation or financial condition of the Franchised Business. Any and all media inquiries concerning the Franchised Business or Franchised Business premises, including, but not limited to, the business operation and incidents and occurrences related to a customer or employee, shall be referred to Franchisor. Neither Franchisee, Franchisee's employees nor anyone on Franchisee's behalf may comment to any broadcast medium, except as directed by Franchisor.
- 11.7. Assignment of Numbers and Listings. At Franchisor's request, Franchisee shall execute such forms and documents as Franchisor deems necessary to appoint Franchisor its true
and lawful attorney-in-fact, with full power and authority, for the sole purpose of assigning to Franchisor, Franchisee's telephone numbers and listings; and provide Franchisor with passwords and administrator rights for all email, software, social media or other such accounts used or created by Franchisee in order to operate the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if the Operating Principal or General Manager is unable to continue in their role or no longer qualifies, the franchisee must notify Fly Fitness promptly and designate a replacement within thirty days. This replacement must meet the same qualifications as the original, including completing all required training and obtaining necessary certifications.
In the interim, the franchisee is responsible for providing management that adheres to the terms of the Franchise Agreement. Failure to comply with these requirements constitutes a material default under the agreement. Fly Fitness, at its discretion, may provide interim management support, charging the franchisee a fee plus all associated travel, lodging, meal, and other expenses until a qualified replacement is in place. These charges can be directly debited from the franchisee's bank account.
The qualifications for both the Operating Principal and the General Manager include meeting Fly Fitness's standards and criteria as outlined in the manual or in writing, being acceptable to Fly Fitness at its sole discretion, and dedicating their full time and best efforts to the business. Both roles must also satisfy the training requirements detailed in Article 7 of the agreement. This ensures that any replacement is fully trained and certified to maintain the standards and operational efficiency of the Fly Fitness franchise.