How long does a Fly Fitness franchisee have to identify a new location if they wish to relocate?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, within 60 days. If you do not identify a site within this time period, we may terminate the Franchise Agreement. While you are closed for relocation, you must continue to pay us a minimum Royalty and Brand Fund contribution equal to the average paid during the four (4) calendar quarters immediately preceding the loss of your premises. Should we consent to your relocation, you will be required to pay us a relocation fee equal to twenty-five percent (25%) of the then-current initial franchise fee.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee has 60 days to identify a new location that meets Fly Fitness's approval if they wish to relocate their Franchised Business. If the franchisee fails to identify a suitable site within this 60-day period, Fly Fitness reserves the right to terminate the Franchise Agreement.
During the relocation period, even while the business is closed, the franchisee must continue to pay Fly Fitness a minimum Royalty and Brand Fund contribution. This payment is calculated based on the average paid during the four calendar quarters immediately preceding the loss of the premises. Additionally, should Fly Fitness consent to the relocation, the franchisee will be required to pay a relocation fee equal to 25% of the then-current initial franchise fee.
This policy has significant implications for a Fly Fitness franchisee. The 60-day window to find a new location is relatively short, placing pressure on the franchisee to act quickly. The ongoing Royalty and Brand Fund contributions during the closure can strain finances, and the relocation fee adds another layer of cost. Franchisees need to carefully consider these financial burdens and the feasibility of finding an appropriate new location within the given timeframe before deciding to relocate.