Can a Fly Fitness franchisee use the internet to make sales outside their territory?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may only solicit sales from customers in your Territory. You may not use Alternative Distribution Channels, such as the Internet, catalog sales, telemarketing, or other direct marketing to make sales outside your Territory; however, we will include a listing on our website of your Fly Fitness outlet location. Your local advertising must target customers in your Territory, although the reach of your local advertising may extend beyond your Territory.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are restricted in their ability to solicit sales outside of their designated territory using online channels. Specifically, Fly Fitness franchisees may only solicit sales from customers within their territory.
The FDD explicitly states that franchisees cannot use alternative distribution channels like the internet, catalog sales, telemarketing, or other direct marketing methods to generate sales outside of their territory. However, Fly Fitness will include a listing of the franchisee's outlet location on its website, which could indirectly lead to sales from outside the territory. The franchisee's local advertising efforts should primarily target customers within their territory, although the advertising's reach may extend beyond those boundaries.
This policy means that Fly Fitness franchisees need to focus their online marketing efforts on their local territory. While the franchisor may engage in online sales through other channels, the franchisee will not receive compensation for those sales within their territory. This territorial restriction is a common practice in franchising to protect the market area of each franchisee and prevent cannibalization of sales between different locations.