Does the Fly Fitness Franchise Agreement grant franchisees the right to participate in licensing programs for alternative distribution channels?

According to Fly Fitness's 2024 Franchise Disclosure Document, the Franchise Agreement does not grant franchisees any rights to participate in licensing programs or other business proposals related to the sale and distribution of Fly Fitness products or services through alternative distribution channels. Alternative distribution channels refer to methods other than a dedicated Fly Fitness outlet, such as retail outlets (including grocery stores), captive market locations like airports and malls, and the Internet.

This means that while franchisees operate their Fly Fitness outlets, the company retains control over sales and distribution through these alternative channels. Franchisees will not have the opportunity to expand their involvement with the brand through these other avenues. Fly Fitness, or its affiliates, can sell products and services through alternative distribution channels within or outside the franchisee's territory without providing any compensation to the franchisee for those sales.

This arrangement is important for prospective franchisees to understand, as it clarifies the scope of their operational rights and potential revenue streams. While franchisees focus on their physical outlet, Fly Fitness maintains the flexibility to explore and manage other market opportunities independently. Franchisees should consider this when evaluating the potential for growth and return on investment, as their business will primarily be limited to the revenue generated within their defined territory and through their physical location.