Is a Fly Fitness franchisee allowed to relocate the Franchised Business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory. Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Fly Fitness outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Fly Fitness franchises bordering and adjacent to the Territory. Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein.
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other fitness concepts under the Marks or other trademarks, and (iii) services and products through any channel in the Territory other than a dedicated Fly Fitness outlet, such as to schools, camps, institutional/professional campuses, and conferences; distribution of products through retail outlets, including but not limited to, grocery, health and fitness outlets; and the Internet ("Alternate Distribution Channels"). Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, the agreement grants the franchisee the right to operate the franchised business at a single location within a defined territory. Fly Fitness agrees not to operate or authorize other franchisees to operate a Fly Fitness outlet in the same territory, using the same marks, as long as the franchisee is not in default and the agreement has not been terminated.
Except when specified in the agreement, the franchisee is prohibited from serving or soliciting customers outside of their territory. Fly Fitness retains the right to open, operate, or franchise Fly Fitness locations bordering or adjacent to the franchisee's territory. The agreement specifies that all rights to businesses, other than those explicitly granted to the franchisee, are reserved to Fly Fitness, whether inside or outside the franchisee's territory.
The Fly Fitness Franchise Disclosure Document does not explicitly address whether a franchisee can relocate their franchised business. The document specifies that the franchisee operates at a single location within a defined territory, but it does not outline the procedure or possibility for changing this location during the term of the agreement. A prospective franchisee should seek clarification from Fly Fitness regarding the possibility and conditions for relocating the franchised business.