For a Fly Fitness franchise, when must the Franchisee designate its General Manager?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.3 Notwithstanding the requirements of Section 11.4.2, Franchisee may also designate and retain at all times a general manager (the "General Manager") to direct the daily operation and management of the Franchised Business. The General Manager may be Franchisee, if Franchisee is an individual, or a Principal. Franchisee shall designate its General Manager prior to attending the Initial Training Program. The General Manager shall, during the entire period he or she serves as General Manager, meet the following qualifications:
- (i) Meet Franchisor's standards and criteria for such individual(s), as set forth in the Manual or otherwise in writing by Franchisor, and shall be an individual otherwise acceptable to Franchisor in its sole discretion.
- (ii) Shall devote his or her full time and best efforts to the daily operation of the Franchised Business, and may not engage in any other business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
- (iii) Satisfy the training requirements set forth in Article 7.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must designate a General Manager prior to attending the Initial Training Program. The General Manager is responsible for directing the daily operation and management of the Franchised Business. The General Manager can be the franchisee if the franchisee is an individual, or a Principal.
The General Manager must meet Fly Fitness's standards and criteria, as outlined in the Manual or in writing by Fly Fitness, and must be acceptable to Fly Fitness in its sole discretion. The General Manager is required to devote their full time and best efforts to the daily operation of the Franchised Business and cannot engage in any other business activity without Fly Fitness's consent.
Furthermore, the General Manager must satisfy the training requirements detailed in Article 7 of the franchise agreement. If the General Manager is unable to continue in their role or no longer qualifies, the franchisee must notify Fly Fitness and designate a replacement within thirty (30) days. Until a replacement is designated, the franchisee must provide interim management for the Franchised Business.