What expenses related to the Initial Management Training Program are the responsibility of the Fly Fitness franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7.1 Initial Management Training Program.
Franchisee (specifically including all Franchisee's principals) and general manager, if any, shall attend and complete to Franchisor's sole and absolute satisfaction, Franchisor's initial management training program ("Initial Management Training Program") prior to the opening of the Franchised Business.
The Initial Management Training Program consists of classroom and handson training for up to five (5) days at Franchisor's headquarters or another location at Franchisor's discretion or virtually.
Franchisee must at all times during the term of this Agreement have principals and a general manager, if any, who have successfully completed the Initial Management Training Program to Franchisor's sole and complete satisfaction.
No charge shall be made for up to three (3) people to take the Initial Management Training Program prior to opening the Franchised Business ("Initial Trainees").
Notwithstanding the foregoing, Franchisee shall be required to pay all of the expenses of the Initial Trainees, including, without limitation, costs of travel, lodging, meals, and wages.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, while there is no charge for up to three people to attend the Initial Management Training Program before opening the Franchised Business, the franchisee is responsible for covering all expenses for these initial trainees. This program is mandatory for the franchisee's principals and general manager, if applicable. The training consists of classroom and hands-on sessions for up to five days. It can take place at Fly Fitness's headquarters, another location at their discretion, or virtually.
The expenses the franchisee must pay include, but are not limited to, the costs of travel, lodging, meals, and wages for the initial trainees. This means that in addition to the direct costs of attending the training, such as transportation and accommodation, the franchisee must also account for the lost productivity of the trainees during the training period.
Fly Fitness determines whether the initial trainees have satisfactorily completed the Initial Management Training Program at its sole discretion. If the training program is not satisfactorily completed, Fly Fitness can terminate the Franchise Agreement. This highlights the importance of ensuring that the individuals attending the training are well-prepared and actively participate in the program to meet Fly Fitness's standards.