What is the Fly Fitness franchisee's obligation regarding directing Internet Companies to transfer Electronic Advertising?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3.1 direct all internet service providers, domain name registries, internet search engines, and other listing agencies (collectively, the "Internet Companies") with which Franchisee has Electronic Advertising and Telephone Listings: (i) to transfer all of Franchisee's Interest in such Electronic Advertising and Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Electronic Advertising and Telephone Listings, Franchisee will immediately direct the Internet Companies to terminate such Electronic Advertising and Telephone Listings or will take such other actions with respect to the Electronic Advertising and Telephone Listings as Franchisor directs; and
- 2.3.2 direct all telephone companies, telephone directory publishers, and telephone directory listing agencies (collectively, the "Telephone Companies") with which Franchisee has Telephone Listings: (i) to transfer all Franchisee's Interest in such Telephone Listings to Franchisor; and (ii) to execute such documents and take such actions as may be necessary to effectuate such transfer.
In the event Franchisor does not desire to accept any or all such Telephone Listings, Franchisee will immediately direct the Telephone Companies to terminate such Telephone Listings or will take such other actions with respect to the Telephone Listings as Franchisor directs.
- 2.4 Appointment; Power of Attorney.
Franchisee hereby constitutes and appoints Franchisor and any officer or agent of Franchisor, for Franchisor's benefit under the Franchise Agreement and this Agreement or otherwise, with full power of substitution, as Franchisee's true and lawful attorney-in-fact with full power and authority in Franchisee's place and stead, and in Franchisee's name or the name of any affiliated person or affiliated company of Franchisee, to take any and all appropriate action and to execute and deliver any and all documents that may be necessary or desirable to accomplish the purposes of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee has specific obligations regarding the transfer of Electronic Advertising and Telephone Listings upon termination of the Franchise Agreement or at the franchisor's request. The franchisee must direct all Internet Companies with which they have Electronic Advertising and Telephone Listings to transfer all interest in such advertising and listings to Fly Fitness. This includes executing necessary documents and actions to complete the transfer. Internet Companies are defined as internet service providers, domain name registries, internet search engines, and other listing agencies. Electronic Advertising includes domain names, social media accounts, and website URLs related to the Fly Fitness brand.
Furthermore, if Fly Fitness does not want to accept any or all of the Electronic Advertising and Telephone Listings, the franchisee is obligated to direct the Internet Companies or Telephone Companies to terminate the Electronic Advertising and Telephone Listings or take other actions as directed by Fly Fitness. This ensures that upon termination or at the request of Fly Fitness, the franchisee relinquishes control and ownership of all online assets associated with the Fly Fitness brand.
To ensure compliance, the franchisee grants Fly Fitness a power of attorney, allowing Fly Fitness to act on the franchisee's behalf to execute documents and take actions necessary to fulfill the agreement's purposes. This provision underscores the importance of transferring digital assets and listings to Fly Fitness, giving the franchisor control over its brand's online presence and marketing efforts. This is a fairly standard practice in franchising, as franchisors need to maintain brand consistency and control.