What are the key elements of the pre-opening timeline and checklist for a Fly Fitness studio?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
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
C. HUMAN RESOURCES
Introduction
[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]
Except as listed below, we are not required to provide you with any assistance.
1. Pre-Opening Obligations
Before you open your Franchised Business, we will:
- a. provide you with site selection guidelines and approve a location for your Franchised Business. Within three (3) months of signing the Franchise Agreement, you must submit a written request for approval to us describing the proposed location and providing other information about the site that we reasonably request. We will respond within fifteen (15) business days, either accepting or rejecting the proposed location. We consider the following factors in approving a site: general location and neighborhood, distance from neighboring franchise territories, proximity to major roads and residential areas, traffic patterns, condition of premises, tenant mix, and demographic characteristics of the area. If you do not identify a site that meets our approval within three (3) months of signing the Franchise Agreement, we reserve the right to terminate the Franchise Agreement. We will not own and/or lease a site to you. You are responsible for negotiating a purchase or lease with the owner of a site we approve. (Franchise Agreement, Sections 8.1.2, 8.1.3,10.1).
- b. provide you with guidance for the layout, design, appearance, and signage for your Fly Fitness outlet. You, your architect, and your contractor are required to draw plans and specifications for the construction of your premises and obtain permits. We do not draw plans or obtain permits for you. (Franchise Agreement, Section 8.2.1, 8.2.2).
- c. loan to you the Fly Fitness Operations Manual and other manuals and training aids we designate for use in the operation of your Fly Fitnessfranchise, as they may be revised from time to time (Franchise Agreement, Section 10.3).
- d. provide a written list of equipment, fixtures, furnishings, signage, supplies and products that will be required to open the Franchised Business. We and our affiliates do not deliver or install any of these items (Franchise Agreement, Section 10.5).
- f. provide you with initial training. We will determine, in our sole discretion, whether you satisfactorily complete the initial training. (Franchise Agreement, Sections 7.1, 7.2).
- g. provide you with standards for qualifications and training of your employees. We do not otherwise assist you with employee hiring and training (Franchise Agreement, Section 12.1.5).
2. Time to Open
We estimate the typical length of time between the signing of the Franchise Agreement and the time you open your Fly Fitness outlet is six to nine (6-9) months. Factors that may affect this time period include your ability to acquire a site, financing, zoning, or other permits; compliance with local ordinances and restrictions; shortages for construction; delivery and installation of fixtures, signs and equipment, and completion of required training. If you have not opened your Franchised Business within twelve (12) months after you sign the Franchise Agreement, or within six (6) months of us approving your location, you must obtain our consent to extend the time to open, which we may or may not grant, at our discretion. Failure to open your Franchised Business within the original time as extended, is a default of the Franchise Agreement. (Franchise Agreement, Sections 8.1.2, 8.3 and 8.4)
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, the pre-opening timeline and checklist are detailed in the Franchise Operations Manual. The manual includes sections on establishing a business form and setting up the Fly Fitness studio. This involves site selection, adhering to specific criteria and acceptance processes, considering lease terms, and building out the studio according to design specifications.
Furthermore, the pre-opening phase requires franchisees to manage various logistical and administrative tasks. These include compiling a list of required equipment and initial supplies inventory, setting up technology and audio equipment, securing contracts with necessary utilities and services, obtaining required licenses and permits, establishing bank accounts, and procuring necessary insurance policies. Franchisees must also meet their tax obligations and establish a pre-sales strategy, culminating in conducting a grand opening event with a detailed timeline of activities.
The FDD also states that Fly Fitness estimates the typical time between signing the Franchise Agreement and opening the Fly Fitness outlet to be six to nine months. Factors influencing this timeline include securing a suitable site, obtaining financing, zoning, and other permits, complying with local ordinances, managing construction shortages, and ensuring timely delivery and installation of fixtures, signs, and equipment, as well as completing the required training. Franchisees must open within twelve months of signing the Franchise Agreement or within six months of site approval; failure to do so may require franchisor consent and could lead to default.
Fly Fitness provides certain pre-opening obligations. They will provide site selection guidelines and approve the franchisee's business location. The franchisee must submit a written request for approval within three months of signing the Franchise Agreement. Fly Fitness will respond within 15 business days, considering factors such as location, distance from other franchises, proximity to roads and residential areas, traffic, premises condition, tenant mix, and demographics. Fly Fitness also offers guidance on layout, design, appearance, and signage, but franchisees are responsible for drawing plans, specifications, and obtaining permits. Fly Fitness will loan the franchisee the Operations Manual and provide a written list of required items to open the franchise, but does not deliver or install these items. They will also provide initial training and set standards for employee qualifications and training.