Does the Fly Fitness franchise agreement include a section on 'Franchisee's Operations'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
nably required to meet System standards and Franchisor's requirements as they may be modified from time to time;
- 12.1.3. Comply with all applicable governmental laws, ordinances, rules and regulations;
- 12.1.4. Maintain sufficient inventories of equipment and products as prescribed by Franchisor and employ sufficient employees as prescribed by Franchisor to operate the Franchised Business at its maximum capacity and efficiency as required by Franchisor. Franchisee may not be open for additional hours or fewer hours or fewer days without prior approval of Franchisor;
- 12.1.5. Conduct sales in accordance with Franchisor's standards and specifications. Franchisee acknowledges and accepts that Franchisee may only engage in providing fitness instruction to end-consumers. Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale. Engaging in such sales shall be a material default of this Agreement;
- 12.1.6. Employ only qualified individuals who are trained in accordance with Franchisor's standards and who will at all times conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System. Within ninety (90) days of hiring, Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) shall obtain personal training certifications issued by a nationally recognized organization approved by Franchisor. In addition to the requirements of Section 7.4 hereof, Franchisee, at Franchisee's sole expense, shall ensure that Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) attend any required continuing education or training programs to maintain their personal training certifications.
- 12.1.7. Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products, or equipment, including removal of same without payment to Franchisee, to determine whether they meet Franchisor's then-current standards, specifications, and requirements. In addition to any other remedies Franchisor may have, Franchisee shall reimburse Franchisor for Franchisor's inspection costs of any item that does not conform to the System standards and specifications;
- 12.1.8. Prominently display signs in and upon the Franchised Business location using the Marks and/or other advertising and/or signs of such nature, form, color, number,
location and size, and containing such material, as Franchisor may from time to time reasonably direct or approve in writing; and to not display in or upon the Franchised Business location or elsewhere any sign or advertising media of any kind to which Franchisor reasonably objects, including signs and advertising media which have been outdated.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, while there isn't a specific section titled 'Franchisee's Operations,' the franchise agreement outlines various operational requirements and restrictions for the franchisee.
The agreement details the franchisee's obligations in operating the Fly Fitness business, including maintaining sufficient inventory and employing enough staff to operate efficiently. It also specifies that franchisees must adhere to the franchisor's standards for conducting sales and can only offer fitness instruction to end-consumers. Selling unapproved products or services, selling outside the premises without approval, or selling to dealers for resale are prohibited.
Furthermore, Fly Fitness franchisees must employ qualified and trained individuals and ensure their coaches obtain personal training certifications from a nationally recognized organization within 90 days of hiring. Franchisees must also allow the franchisor to inspect the business location, services, products, and equipment to ensure compliance with the franchisor's standards.
The agreement also covers technology-related requirements, such as software licenses, hardware, internet access, and email usage. Franchisees are responsible for maintaining the security of their computer and payment processing systems. These stipulations collectively define how a Fly Fitness franchisee must manage the day-to-day operations of their business, even without a dedicated section labeled 'Franchisee's Operations'.