In the Fly Fitness franchise agreement, how many principals are required to sign on behalf of the Franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
In consideration for such specialized training, trade secrets, Confidential Information and rights, Franchisee, and Principal(s) covenant that, except as otherwise approved in writing by Franchisor:
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 requires both the Franchisee and the Principal(s) to sign the agreement. The document does not specify a minimum or maximum number of principals required to sign. The number of principals may depend on the franchisee's business structure (e.g., sole proprietorship, partnership, corporation).
This requirement ensures that all individuals with significant ownership or management roles are bound by the terms of the franchise agreement. This includes covenants like non-compete clauses and confidentiality agreements. By having all principals sign, Fly Fitness aims to protect its brand, trade secrets, and business operations from potential breaches by any party involved in the franchise.
A prospective Fly Fitness franchisee should clarify with the franchisor the definition of "Principal" and the specific requirements for who must sign the franchise agreement based on their individual business circumstances. Understanding these requirements is crucial for ensuring full compliance with the franchise agreement and avoiding potential legal issues in the future.