From whom may a Fly Fitness franchisee solicit sales?

According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee may only solicit sales from customers located within their designated territory. This means the franchisee's marketing and sales efforts should primarily target individuals and businesses inside the specific geographic area outlined in their Franchise Agreement. The territory is defined by a group of contiguous zip codes, with a minimum population of approximately 20,000.

Fly Fitness franchisees are explicitly prohibited from using alternative distribution channels, such as internet sales, catalogs, telemarketing, or other direct marketing methods, to solicit or make sales outside of their assigned territory. However, Fly Fitness will include a listing of the franchisee's outlet location on its website, which could indirectly lead to customers from outside the territory finding the location. The franchisee's local advertising efforts should primarily target customers within their territory, although the reach of the advertising may extend beyond the territory's boundaries.

This territorial restriction is a common practice in franchising to prevent conflicts between franchisees and to ensure that each franchisee has a defined market to focus on. However, the FDD also states that Fly Fitness and its affiliates retain the right to sell products and services through alternative distribution channels, even within a franchisee's territory. This means that while a franchisee is limited to soliciting customers within their territory, Fly Fitness itself can sell directly to customers in that same territory through other means, such as online sales or retail partnerships. This is a crucial point for prospective franchisees to consider, as it could impact their potential customer base and revenue.