How long does a Fly Fitness franchisee have to replace an Operating Principal who ceases to serve?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.4 If either the Operating Principal or the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the Operating Principal or the General Manager, as the case may be, ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).
Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement.
Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement.
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements.
Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee has 30 days to designate a replacement Operating Principal or General Manager if either is no longer able to serve or no longer qualifies under the Franchise Agreement. The replacement must meet the same qualifications as the original, including completing all required training and certifications.
During the 30-day period, the franchisee must provide interim management to ensure the Fly Fitness business continues to operate according to the agreement. Failure to comply with these requirements constitutes a material breach of the Franchise Agreement.
Fly Fitness, at its discretion, can provide interim management support and charge the franchisee a fee, along with travel, lodging, meals, and other expenses, until a qualified replacement is in place. These charges can be directly withdrawn from the franchisee's designated bank account.