Where can the form for the employee covenants be found for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, in connection with his or her duties, it will be necessary for Covenantor to have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Fly Fitness operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information").
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
WHEREAS, Franchisee has acknowledged the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and
WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential Information constitutes independent valuable consideration for the representations, promises and covenants made by Covenantor herein.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her employment by or association with Franchisee in connection with the operation of a Franchised Business under the Franchise Agreement.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall not at any time disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees of Franchisee for training and assisting such employees in the operation of the Franchised Business.
- d. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisee or Franchisor, upon request, or upon termination of employment or association with Franchisee.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the employee covenants detail the obligations of individuals associated with a Fly Fitness franchise regarding confidential information and competition. Specifically, these covenants are designed to protect Fly Fitness's trade secrets and goodwill.
The FDD states that the employee or 'Covenantor' will need access to confidential information, operations manuals, and other materials related to the Fly Fitness system. The Covenantor must agree to protect this information and the system against unfair competition. This agreement is acknowledged as valuable consideration for the Covenantor's promises.
The document outlines confidentiality obligations, stating that the Covenantor must maintain the confidentiality of the information and use it only for operating the franchised business. They cannot make copies without permission or disclose the information, except to employees for training purposes. Upon request or termination, all confidential materials must be surrendered. The FDD does not specify where the form is located, but it does state that the form must be returned to Fly Fitness Franchise, L.L.C. at their address in Lincoln, Nebraska.
Prospective franchisees should ask Fly Fitness for the exact location of the employee covenant form and review it carefully with their legal counsel to fully understand their obligations and ensure compliance.