What are the general character requirements for a proposed transferee of a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee.
Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval.
Franchisor may void any transfer made without such approval.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the company emphasizes the personal nature of the agreement with its franchisees. Fly Fitness states that the agreement is made in reliance on their perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of the franchisee. This means that Fly Fitness carefully assesses these qualities when awarding a franchise.
Because of this, if a franchisee wants to transfer their franchise to someone else, Fly Fitness requires prior written approval. The company retains the right to void any transfer made without their explicit consent. This provision underscores Fly Fitness's control over who operates a franchise under their brand name.
This requirement is typical in franchising, as franchisors want to ensure that new franchisees meet their standards and are capable of maintaining the brand's reputation and operational consistency. A prospective Fly Fitness franchisee should understand that exiting the business through a transfer is not guaranteed and depends on finding a suitable buyer who meets Fly Fitness's approval.