Does the Fly Fitness Franchise Agreement require the franchisee to personally supervise the Fly Fitness outlet?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires that you personally supervise your Fly Fitness outlet. Your Fly Fitness outlet must be directly supervised by a general manager who is either the Franchisee or, if the Franchisee is an entity, at least a 10% shareholder in the franchisee entity. Your general manager must successfully complete our Initial Management Training Program and all other training courses we require. If the franchisee is a business entity, your general manager is not required to have an equity interest in the franchisee entity. Your manager must devote full time to the job and cannot have an interest or business relationship with any of our competitors.
Your manager and all other personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure/Non-Competition Agreement, which is attached to our Franchise Agreement as Attachment 8. If your Franchised Business is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. If you are a married individual, your spouse must sign our Personal Guaranty, which is attached to our Franchise Agreement as Attachment 7.
Source: Item 15 — OBLIGATIONS OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Franchise Agreement mandates that franchisees personally supervise their Fly Fitness outlet. However, if the franchisee is a business entity, the outlet must be directly supervised by a general manager who is at least a 10% shareholder in the franchisee entity.
The general manager, whether the franchisee or a designated shareholder, must successfully complete Fly Fitness's Initial Management Training Program and any other required training courses. This ensures that the individual in charge of daily operations is well-versed in the Fly Fitness system and standards.
The general manager must devote full time to the job and cannot have any conflicting interests or business relationships with Fly Fitness's competitors. This requirement aims to prevent conflicts of interest and ensure the manager's undivided attention to the success of the Fly Fitness outlet. If the franchisee is a business entity, the general manager is not required to have an equity interest in the franchisee entity. Furthermore, all personnel with access to proprietary and confidential information must sign a Non-Disclosure/Non-Competition Agreement, and if the franchise is owned by an entity, all owners must sign the Franchise Agreement as a Principal. If the franchisee is married, their spouse must sign a Personal Guaranty.