What is included as Attachment 2 to the Fly Fitness Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Franchise Agreement, you have the right to establish and operate one (1) Fly Fitness outlet within a territory (the "Territory"). You are required to find and obtain possession of a specific location in your Territory for your Franchised Business that meets our site selection standards and our approval. Your Territory is located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous zip codes. The Territory is determined on an individual basis taking into account area demographics and population density. The minimum Territory granted is an area with a minimum population of approximately 20,000. Your Territory will be defined and attached to your Franchise Agreement as Attachment 2. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area list as Attachment 2.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
During the term of your Franchise Agreement, and provided that you are not in default of your Franchise Agreement, we will not open another Fly Fitness outlet or grant the right to anyone else to open a Fly Fitness outlet within the Territory. However, notwithstanding this limited protection right we grant to you, we reserve all rights to sell our products and services under the Marks in the Territory through alternative distribution channels, as discussed below. There is no minimum sales requirement, market penetration, or other contingency that will affect your limited protected right to operate in the Territory during the term of your Franchise Agreement, unless you are in default of your obligations to us.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Attachment 2 to the Franchise Agreement defines the franchisee's territory. The territory is determined by Fly Fitness on a case-by-case basis, considering area demographics and population density. The minimum territory granted will have a population of approximately 20,000.
If the franchisee has not yet secured a location when signing the Franchise Agreement, Attachment 2 will instead contain a non-exclusive site search area list. This allows the franchisee to begin looking for potential locations that meet Fly Fitness's site selection standards. The franchisee is required to find and obtain possession of a specific location in their territory that meets Fly Fitness's approval.
It is important to note that Fly Fitness franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands controlled by Fly Fitness. Despite this, Fly Fitness agrees not to open another Fly Fitness outlet or grant the right to anyone else to open one within the franchisee's territory during the term of the Franchise Agreement, provided the franchisee is not in default.