What insurance policies are Fly Fitness franchisees required to procure?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
B. PRE-OPENING PROCEDURES
Introduction
Pre-Opening Timeline and Checklist
Detailed Opening Timeline Breakout
Establishment of Business Form
Setting Up Your Fly Fitness Studio
Site Selection Criteria Site Acceptance Process Lease Considerations Building-Out the Studio Design Specifications
Required List of Equipment and Initial Inventory of Supplies
Technology Fitness & Studio Equipment Studio Finishes Audio Equipment
Contracting with Required Utilities and Services
Obtaining Required Licenses and Permits
Setting Up Bank Accounts
Procuring Required Insurance Policies
Meeting Your Tax Obligations
Establishing a Pre-Sales Strategy
Conducting a Grand Opening
Grand Opening Timeline of Activities Planning the Event Performing the Event
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to obtain necessary insurance policies as part of the pre-opening procedures for their studio. While the FDD mentions the requirement to procure these policies, it does not specify the types or amounts of coverage franchisees must secure.
Typically, franchisors mandate certain minimum insurance coverages to protect the brand and the network from potential liabilities. These often include general liability, property damage, worker's compensation (if the franchisee has employees), and sometimes business interruption insurance. The specifics can vary based on the nature of the business, the size of the premises, and local regulations.
Prospective Fly Fitness franchisees should clarify with the franchisor the exact types and amounts of insurance coverage they will need to obtain before opening their studio. Understanding these requirements is crucial for budgeting startup costs and ensuring ongoing compliance with the Franchise Agreement. Franchisees should also inquire about any approved insurance providers or preferred programs that Fly Fitness may have in place.