Can Fly Fitness increase the minimum insurance requirements for franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Increase in Coverage.The levels and types of insurance stated herein are minimum requirements.
Franchisor reserves the right to raise the required minimum requirements for any type of insurance or add additional types of insurance requirements as Franchisor deems reasonably prudent to require.
Within thirty (30) days of any such required new limits or types of coverage, Franchisee must submit proof to Franchisor of Franchisee's coverage pursuant to Franchisor's requirements.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness retains the right to increase the minimum insurance requirements for franchisees. The document states that the levels and types of insurance initially specified are minimums, and Fly Fitness can raise these minimums or add new types of insurance requirements if deemed reasonably prudent.
This means that as a Fly Fitness franchisee, you must be prepared to adjust your insurance coverage during the term of your franchise agreement to meet any new requirements imposed by Fly Fitness. These changes could result in increased costs for insurance premiums.
The FDD specifies that franchisees must submit proof of coverage meeting the new requirements within thirty days of being notified of the change. This requirement ensures that all franchisees maintain adequate insurance coverage as determined by Fly Fitness. It is important for prospective franchisees to factor in potential future insurance cost increases when evaluating the financial viability of the franchise.