Does the Fly Fitness franchise agreement include a section on 'Non-Disclosure and Non-Competition Covenants'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
19. NON-DISCLOSURE AND NON-COMPETITION COVENANTS.
19.1. Operations Manual.
- 19.1.1.
Franchisor has provided to Franchisee, on loan, a current copy of the Manual.
The Manual may be in hard copy or made available to Franchisee in digital, electronic, or computerized form or in some other form now existing or hereafter developed that would allow Franchisee to view the contents thereof.
If the Manual (or any changes thereto) are provided in a form other than physical copy, Franchisee shall pay any and all costs to retrieve, review, use or access the Manual.
To protect the reputation and goodwill of Franchisor and to maintain high standards of operation under Franchisor's Marks, Franchisee shall operate all aspects of the Franchised Business in accordance with the Manual, as they may from time to time be modified by Franchisor, other written directives that Franchisor may issue to Franchisee from time to time, whether or not such directives are included in the Manual, and any other manual and materials created or approved for use in the operation of the Franchised Business.
- 19.1.2.
Franchisee and Principal(s) shall at all times treat the Manual, written directives, and other materials and any other confidential communications or materials, and the information contained therein, as confidential and shall maintain such information as trade secret and confidential in accordance with this Article and this Agreement.
Franchisee and Principal(s) shall not divulge and make such materials available to anyone other than those of Franchisee's employees who require the information contained therein to operate the Franchised Business.
Franchisee shall, prior to disclosure, fully train and inform its employees on all the restrictions, terms, and conditions under which it is permitted to use Franchisor's intellectual, proprietary, and confidential information; and shall ensure its employees' compliance with such restrictions, terms, and conditions.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Yes, according to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement includes a section dedicated to non-disclosure and non-competition covenants. Specifically, section 19 of the franchise agreement addresses these covenants.
The agreement states that Fly Fitness provides a current copy of its operations manual to the franchisee, which may be in hard copy or digital form. The franchisee and its principals must treat the manual, written directives, confidential communications, and the information contained within as confidential, maintaining them as trade secrets. Access to these materials is restricted to employees who require the information to operate the franchised business.
Furthermore, franchisees must train their employees on the restrictions and conditions regarding the use of Fly Fitness's intellectual, proprietary, and confidential information, ensuring their compliance. This section underscores the importance Fly Fitness places on protecting its operational methods and confidential information, which is a common practice in franchising to maintain brand consistency and competitive advantage.