Must a Fly Fitness franchisee purchase equipment according to Fly Fitness's specifications?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
URCES OF PRODUCTS AND SERVICES**
We have identified various suppliers, distributors and manufacturers of equipment, fixtures, inventory, and services that your Franchised Business must use or provide which meets our standards and requirements. You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. We maintain written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. We will update these lists periodically and issue the updated lists to all franchisees.
We approve suppliers after careful review of the quality of the products they provide to us and our franchisees. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meets our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier
within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we may charge for our actual costs of product testing and evaluation.
We and our affiliates currently do not receive any revenue, rebates, discounts, or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment; however, we may do so in the future, and any rebates or discounts we receive may be kept by us in our sole discretion. We and our affiliates have not received any revenue from franchisees required purchases or leases as of the date of this Disclosure Document.
We require you to purchase computer systems and software meeting our minimum specifications for use at your Franchised Business.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must adhere to specific requirements regarding the purchase of equipment, fixtures, inventory, and services for their franchised business. Fly Fitness has identified approved suppliers, distributors, and manufacturers that franchisees must use, ensuring that these sources meet Fly Fitness's standards. Franchisees are obligated to purchase all inventory, equipment, computer systems, and certain software from these designated suppliers and contractors or in accordance with Fly Fitness's detailed specifications.
Fly Fitness maintains written lists of approved items, including equipment, fixtures, inventory, and supplies, specifying these items by brand name or by detailed standards and specifications. These lists also include designated suppliers and contractors for these items. Fly Fitness updates these lists periodically and issues the updated versions to all franchisees. This ensures that franchisees have access to the most current information regarding approved sources and specifications.
If a franchisee wishes to use an alternative item or supplier, they must submit a written request to Fly Fitness, and the supplier must provide samples and any other required information for evaluation. Fly Fitness will then determine, at its sole discretion, whether the proposed item or supplier meets its specifications. Fly Fitness aims to notify the franchisee of its decision within 30 days after receiving all necessary information. However, if no approval is given within this timeframe, the request is considered unapproved. Fly Fitness also reserves the right to revoke approval of any item or supplier that no longer meets its standards.
The FDD indicates that the purchase or lease of products, supplies, and services from approved suppliers or those meeting Fly Fitness's specifications will constitute approximately 41% to 47% of the initial costs to establish the franchised business and about 9% of the ongoing operational costs. Failure to comply with the approved items or designated suppliers may result in a default under the Franchise Agreement, potentially leading Fly Fitness to direct suppliers to withhold products and services.