Does the Fly Fitness franchisor reserve rights to businesses other than those specified in the Development Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding the provisions of Section 2.1 above, Developer understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory.
By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other fitness concepts under the Marks or other trademarks, and (iii) services and products through any channel in the Territory other than a dedicated Fly Fitness outlet, such as to schools, camps, institutional/professional campuses, and conferences; distribution of products through retail outlets, including but not limited to, grocery, health and fitness outlets; and the Internet ("Alternate Distribution Channels").
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisor retains all rights to businesses beyond those explicitly granted to the developer in the Development Agreement. This reservation of rights extends both within and outside the developer's designated territory.
Specifically, Fly Fitness reserves the right to offer other products or services not currently offered under its trademarks, explore other fitness concepts under the Fly Fitness brand or other trademarks, and distribute services and products through alternative channels. These alternative channels include schools, camps, institutional or professional campuses, conferences, retail outlets such as grocery and health and fitness stores, and the Internet. These examples are provided for illustrative purposes only.
This reservation of rights has significant implications for potential Fly Fitness developers. While developers are granted specific rights to develop and operate Fly Fitness franchises within their designated area, the franchisor maintains the flexibility to pursue other business opportunities, potentially including those that could compete with the developer's business. Prospective developers should carefully consider this aspect and discuss with Fly Fitness how these reserved rights might impact their investment and business operations.