What happens if a Fly Fitness franchisee does not have a location at the signing of the Franchise Agreement?

According to Fly Fitness's 2024 Franchise Disclosure Document, if a franchisee does not have a location secured when signing the Franchise Agreement, they will receive a non-exclusive site search area list as Attachment 2. This means that while the franchisee is obligated to find a suitable location, Fly Fitness does not grant exclusive rights to a specific territory until a location is secured and approved. The franchisee is responsible for finding a location that meets Fly Fitness's site selection standards.

This arrangement carries implications for the franchisee. Without a secured location at signing, the franchisee faces the risk of expending time and resources on a site search without any guarantee of exclusivity in the area. The non-exclusive site search area list means that other potential franchisees could also be considering locations in the same general vicinity. This situation underscores the importance of a swift and thorough site selection process to secure a favorable location before a competitor does.

It's important to note that Fly Fitness retains significant control over site selection, requiring that the chosen location meets their standards and receives their approval. This protects the brand's image and ensures consistency across all franchise locations. However, it also means that the franchisee must work closely with Fly Fitness during the site selection process and may need to consider multiple locations before finding one that meets the franchisor's criteria. Franchisees should clarify the specific criteria Fly Fitness uses to evaluate potential sites to streamline the search process.