Can the General Manager for a Fly Fitness franchise engage in other business activities?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.3 Notwithstanding the requirements of Section 11.4.2, Franchisee may also designate and retain at all times a general manager (the "General Manager") to direct the daily operation and management of the Franchised Business. The General Manager may be Franchisee, if Franchisee is an individual, or a Principal. Franchisee shall designate its General Manager prior to attending the Initial Training Program. The General Manager shall, during the entire period he or she serves as General Manager, meet the following qualifications:
- (i) Meet Franchisor's standards and criteria for such individual(s), as set forth in the Manual or otherwise in writing by Franchisor, and shall be an individual otherwise acceptable to Franchisor in its sole discretion.
- (ii) Shall devote his or her full time and best efforts to the daily operation of the Franchised Business, and may not engage in any other business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the General Manager of a Fly Fitness franchise is generally required to devote their full time and best efforts to the daily operation of the franchised business. Specifically, the FDD states that the General Manager may not engage in any other business activity without Fly Fitness's consent, which Fly Fitness may withhold at its sole discretion. This requirement is in place during the entire period the individual serves as General Manager.
This restriction ensures that the General Manager is fully dedicated to the success of the Fly Fitness location. It allows Fly Fitness to maintain consistent standards and operational efficiency across all franchise locations. The franchisor wants to ensure that the General Manager is not distracted by outside interests that could detract from their performance and commitment to the Fly Fitness business.
For a prospective franchisee, this means that the person they designate as General Manager must be prepared to commit their full working time to the Fly Fitness business. If the franchisee intends to serve as the General Manager, they must also be willing to forgo other business activities unless they obtain explicit consent from Fly Fitness. This consent is not guaranteed and can be withheld at Fly Fitness's discretion, so franchisees should carefully consider this restriction when planning their business ventures.
This requirement is fairly common in franchising, particularly in businesses that demand significant time and attention to manage effectively. Franchisees should discuss this restriction with Fly Fitness during their due diligence to understand the circumstances under which consent for outside business activities might be granted, and to fully assess the implications for themselves or their chosen General Manager.