In the Fly Fitness Franchise Disclosure Document, who is collectively referred to as 'Franchisee'?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
All fictitious names used by Franchisee shall bear the designation "a franchisee of Fly Fitness Franchise, L.L.C.".
- 14.7.2.
Franchisee shall identify itself as the owner of the Franchised Business and as an independent Fly Fitness franchisee in conjunction with any use of the Intellectual Property, including, but not limited to, uses on invoices, order forms, receipts, and contracts, as well as the display of a notice in such content and form and at such conspicuous locations on the premises of the Franchised Business as Franchisor may designate in writing.
- 14.7.3.
Franchisee shall not use the Intellectual Property to incur any obligation or indebtedness on behalf of Franchisor.
- 14.7.4.
Any item offered by Franchisee that contains the Marks, must be approved by Franchisor in writing prior to being distributed or sold by Franchisee and such approval may be granted or denied in Franchisor's sole and absolute discretion.
- 14.8.
Claims.
Franchisee shall notify Franchisor immediately via both email and telephone, of any apparent infringement of or challenge to Franchisee's use of any Intellectual Property and of any claim by any person of any rights in any Intellectual Property.
Franchisee shall not communicate with any person other than Franchisor or any designated affiliate thereof, their counsel and Franchisee's counsel in connection with any such infringement, challenge, or claim.
Franchisor shall have complete discretion to take such action as it deems appropriate in connection with the foregoing, and the right to control exclusively, or to delegate control to any of its affiliates of, any settlement, litigation or other proceeding arising out of any such alleged infringement, challenge or claim or otherwise relating to any Intellectual Property.
Franchisee agrees to execute any and all instruments and documents, render such assistance, and do such acts or things as may, in the opinion of Franchisor, reasonably be necessary or advisable to protect and maintain the interests of Franchisor or any other person or entity in any litigation or other proceeding or to otherwise protect and maintain the interests of Franchisor or any other interested party in the Intellectual Property.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the term 'Franchisee' collectively refers to the individual or entity that is granted the rights to operate a Fly Fitness franchise. This is evident in several contexts within the document. For instance, the Franchisee is identified as the party responsible for conducting an independent investigation of the business and acknowledging the business risks involved. The Franchisee must also identify themselves as the owner of the franchised business and an independent Fly Fitness franchisee in conjunction with any use of intellectual property.
Furthermore, the Franchisee is the party that must obtain a written agreement from anyone who has access to confidential information related to the Fly Fitness system, protecting this information and the system itself from unfair competition. The Franchisee's rights and duties under the Franchise Agreement are personal, based on Fly Fitness's perceptions of the individual's or entity's character, skills, and financial capacity. This means that the Franchisee cannot transfer their rights or duties without Fly Fitness's prior written approval.
In essence, the 'Franchisee' is the party entering into the agreement with Fly Fitness to operate a franchise, and the term encompasses all the responsibilities, obligations, and rights associated with that role. A prospective franchisee should carefully review all sections of the Franchise Disclosure Document that refer to 'Franchisee' to fully understand their commitments and the franchisor's expectations.