factual

What is the Fly Fitness Franchisee required to do to assist in accomplishing the purposes of the agreement?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

nably required to meet System standards and Franchisor's requirements as they may be modified from time to time;

  • 12.1.3. Comply with all applicable governmental laws, ordinances, rules and regulations;
  • 12.1.4. Maintain sufficient inventories of equipment and products as prescribed by Franchisor and employ sufficient employees as prescribed by Franchisor to operate the Franchised Business at its maximum capacity and efficiency as required by Franchisor. Franchisee may not be open for additional hours or fewer hours or fewer days without prior approval of Franchisor;
  • 12.1.5. Conduct sales in accordance with Franchisor's standards and specifications. Franchisee acknowledges and accepts that Franchisee may only engage in providing fitness instruction to end-consumers. Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale. Engaging in such sales shall be a material default of this Agreement;
  • 12.1.6. Employ only qualified individuals who are trained in accordance with Franchisor's standards and who will at all times conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System. Within ninety (90) days of hiring, Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) shall obtain personal training certifications issued by a nationally recognized organization approved by Franchisor. In addition to the requirements of Section 7.4 hereof, Franchisee, at Franchisee's sole expense, shall ensure that Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) attend any required continuing education or training programs to maintain their personal training certifications.
  • 12.1.7. Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products, or equipment, including removal of same without payment to Franchisee, to determine whether they meet Franchisor's then-current standards, specifications, and requirements. In addition to any other remedies Franchisor may have, Franchisee shall reimburse Franchisor for Franchisor's inspection costs of any item that does not conform to the System standards and specifications;
  • 12.1.8. Prominently display signs in and upon the Franchised Business location using the Marks and/or other advertising and/or signs of such nature, form, color, number,

location and size, and containing such material, as Franchisor may from time to time reasonably direct or approve in writing; and to not display in or upon the Franchised Business location or elsewhere any sign or advertising media of any kind to which Franchisor reasonably objects, including signs and advertising media which have been outdated. Upon giving Franchisee notice of its objection to same or upon termination hereof, Franchisor may at any time enter upon the Franchised Business location or elsewhere and remove any objectionable or non-approved signs or advertising media and keep or destroy same without paying therefor or without being deemed guilty of trespass or any other tort;

12.1.9. Conduct all advertising programs in a manner consistent with Franchisor's standards and specifications, in a manner satisfactory to Franchisor and that will not detract from the reputation of the System or the Marks.

12.2. Bookkeeping and Reports.

  • 12.2.1. Franchisee agrees to keep and maintain complete and accurate books and records of its transactions and business operations using the accounting procedures and chart of accounts specified by Franchisor. Franchisee agrees to purchase the Computer Systems specified in Section 12.3 to maintain the records and accounts of the Franchisee to the standards of the Franchisor. Franchisee acknowledges and agrees that the financial data of Franchisee's Franchised Business (i) is owned by Franchisor, (ii) is Franchisor's Proprietary Information, (iii) may be published in franchise disclosure document(s) issued by Franchisor following the Effective Date hereof, and (iv) may be shared with other franchisees in the System.
  • 12.2.2. Within ninety (90) days after the close of each fiscal year, and at any time upon Franchisor's written request, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said period, together with a balance sheet for the Franchised Business, all of which shall be prepared in accordance with generally accepted accounting principles and practice. Franchisee's annual statements and balance sheets shall be prepared by an independent certified public accountant and certified to be correct.
  • 12.2.3. The financial statements required hereunder shall be in such form and contain such information as Franchisor may from time to time reasonably designate.
  • 12.2.4.

Source: Item 22 — CONTRACTS (FDD pages 44–45)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees have several obligations to help achieve the agreement's objectives. These include maintaining sufficient inventory and employing enough staff to operate the business at maximum capacity and efficiency as prescribed by Fly Fitness. Franchisees must also conduct sales according to Fly Fitness's standards and specifications, focusing solely on providing fitness instruction to end-consumers. They are restricted from selling unapproved products or services, selling outside the approved premises (except for approved promotional events), selling online except through approved platforms, or selling to dealers for resale. Violating these sales restrictions constitutes a material breach of the agreement.

Furthermore, Fly Fitness franchisees must employ qualified individuals trained to Fly Fitness's standards, ensuring they act competently and courteously. Coaches must obtain personal training certifications from a nationally recognized organization approved by Fly Fitness within 90 days of hiring and maintain these certifications through continuing education. Franchisees must also allow Fly Fitness or its agents to inspect the business location, services, products, and equipment to ensure compliance with Fly Fitness's standards.

Additionally, Fly Fitness may require franchisees to enter into software license agreements for software used in the Fly Fitness system and maintain adequate hardware and software for internet access at the required speed. Franchisees must use the email account provided by Fly Fitness, promptly read and respond to emails, and refrain from establishing unauthorized websites. Franchisees are also responsible for paying all technology-related fees and maintaining the security of their computer and payment processing systems. Finally, franchisees must assist Fly Fitness in defending against any claims that Fly Fitness is the employer of the franchisee's employees.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.