Is a Fly Fitness franchisee required to purchase computer systems from designated suppliers?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We require you to purchase computer systems and software meeting our minimum specifications for use at your Franchised Business. This includes entry-area computer hardware that operates our current required POS system and additional laptop computer or smart device that can operate other required software. You must also have Internet and other telecommunications equipment and services in accordance with our standards to permit electronic transmission of sales information. We reserve the right to change your requirements for computer hardware and software at any time.
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.
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.
failure to use approved items or designated suppliers and contractors may be a default under the Franchise Agreement. Additionally, when there is any default under the Franchise Agreement, we reserve the right, in addition to other remedies available under the Franchise Agreement, to direct suppliers to withhold furnishing products and services to you.
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 purchase computer systems and certain software from designated suppliers and contractors or in accordance with Fly Fitness's specifications. These systems must meet Fly Fitness's minimum specifications for use at the Franchised Business, including entry-area computer hardware that operates the current required POS system and an additional laptop computer or smart device that can operate other required software. Franchisees must also have Internet and other telecommunications equipment and services in accordance with Fly Fitness's standards to permit electronic transmission of sales information. Fly Fitness reserves the right to change the requirements for computer hardware and software at any time.
Fly Fitness maintains 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. These lists will be updated periodically and issued to all franchisees. If a franchisee would like Fly Fitness to consider another item or supplier, they must make such request in writing to Fly Fitness and have the supplier give samples of its product or service and such other information that Fly Fitness may require. Fly Fitness will make a good-faith effort to notify the franchisee whether they approve or disapprove of the proposed item or supplier within 30 days after receiving all required information to evaluate the product or service. If Fly Fitness does not approve any request within 30 days, it is deemed unapproved. Fly Fitness reserves the right to revoke approval of any item or supplier that does not continue to meet its then-current standards.
Fly Fitness's criteria for approving items and suppliers are not available to franchisees. If a franchisee requests that Fly Fitness approve a proposed item or supplier, Fly Fitness may charge for its actual costs of product testing and evaluation. Failure to use approved items or designated suppliers and contractors may be a default under the Franchise Agreement. Additionally, when there is any default under the Franchise Agreement, Fly Fitness reserves the right, in addition to other remedies available under the Franchise Agreement, to direct suppliers to withhold furnishing products and services to the franchisee.
This requirement ensures uniformity and quality control across all Fly Fitness franchise locations, but it also limits the franchisee's autonomy in choosing suppliers and potentially increases their costs. Prospective franchisees should carefully consider these restrictions and evaluate the potential impact on their business operations and profitability.