When must a Fly Fitness 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.
11.4.4 If either the Operating Principal or the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the Operating Principal or the General Manager, as the case may be, ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).
Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement.
Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement.
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements.
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 Fly Fitness franchise.
The FDD specifies that 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, devote full time and effort to the daily operation of the business, and satisfy the training requirements outlined in Article 7 of the franchise agreement.
If the General Manager is unable to continue in their capacity or no longer qualifies, the franchisee must notify Fly Fitness promptly and designate a replacement within thirty (30) days. Until a replacement is designated, the franchisee must provide interim management for the business. Failure to comply with these requirements constitutes a material event of default under the agreement. Fly Fitness may provide interim management support at the franchisee's expense until a qualified replacement is found.