Does the Fly Fitness franchise agreement allow the franchisee to act as an agent of the franchisor?
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 franchise agreement does not allow the franchisee to act as an agent of the franchisor. The agreement specifies that Fly Fitness franchisees are independent business owners and operators.
The FDD states that the franchisor has no authority to control the essential terms and conditions of employment of the franchisee's employees, emphasizing the franchisee's sole discretion in these matters. The training provided by Fly Fitness for the franchisee's employees is intended to impart the brand's procedures and systems, and does not reflect any employment relationship between the franchisor and the franchisee's employees.
Furthermore, the franchise agreement includes a clause where the franchisee agrees to defend Fly Fitness against any claims asserting that the franchisor is the employer, joint employer, or co-employer of the franchisee's employees. This reinforces the independent nature of the franchise relationship and protects the franchisor from potential liabilities related to the franchisee's employees.