What is a Fly Fitness franchisee required to do with the Manual upon termination or expiration of the franchise agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee or their employee (Covenantor) must surrender any material containing confidential information, including the operations manual, to the franchisee or Fly Fitness upon request or upon termination of employment or association with the franchisee. This requirement ensures that Fly Fitness's proprietary information remains protected even after the franchise agreement ends or an employee leaves.

This obligation extends not only to the franchisee but also to anyone who has had access to the confidential information, such as employees. This is achieved through a confidentiality agreement that Fly Fitness requires the franchisee to obtain from anyone who has access to the confidential information. This agreement ensures that these individuals are also legally bound to protect Fly Fitness's confidential information.

For a prospective Fly Fitness franchisee, this means understanding the importance of safeguarding the operations manual and other confidential materials. It also means ensuring that all employees who have access to this information sign the required confidentiality agreement and are aware of their obligations to protect Fly Fitness's trade secrets. Failing to comply with these requirements could result in legal action from Fly Fitness to protect its confidential information.