Does the Fly Fitness franchise agreement grant the franchisee the right to bind 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)
Based on the 2024 Fly Fitness Franchise Disclosure Document, the franchise agreement does not grant the franchisee the right to bind the franchisor. The agreement outlines specific limitations and reservations of rights, ensuring the franchisee's actions do not create obligations for Fly Fitness.
Specifically, the FDD states that Fly Fitness has no authority to control the terms and conditions of employment of the franchisee's employees. The franchisee solely determines these terms. Any training provided by Fly Fitness to the franchisee's employees is intended to impart the procedures, protocols, systems, and operations of a Fly Fitness franchise, and does not reflect any employment relationship between Fly Fitness and the franchisee's employees. The franchisee agrees to defend Fly Fitness against any assertion that Fly Fitness is the employer of the franchisee's employees.
This separation is typical in franchising, where franchisees are independent business owners. This protects Fly Fitness from potential liabilities related to the franchisee's business operations, including employment-related claims. Prospective franchisees should understand that they are responsible for all employment-related decisions and liabilities within their Fly Fitness franchise.