Does Fly Fitness maintain a written list of approved equipment for franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We have identified various suppliers, distributors and manufacturers of equipment, fixtures, inventory, and services that your Franchised Business must use or provide which meets our standards and requirements. You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. We maintain written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. We will update these lists periodically and issue the updated lists to all franchisees.
We approve suppliers after careful review of the quality of the products they provide to us and our franchisees. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meets our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier
within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we may charge for our actual costs of product testing and evaluation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness maintains written lists of approved equipment, fixtures, inventory, and supplies for its franchisees. These lists include items identified by brand name, standards, and specifications. Fly Fitness also provides a list of designated suppliers and contractors for these items. These lists are updated periodically and issued to all franchisees.
Prospective Fly Fitness franchisees are required to purchase inventory, equipment, computer systems, and certain software from Fly Fitness's designated suppliers and contractors, or ensure that their purchases meet Fly Fitness's specifications. If a franchisee wishes to use an alternative item or supplier, they must submit a written request to Fly Fitness, and the supplier must provide samples and other required information for evaluation. Fly Fitness will then determine, at its sole discretion, whether to approve the item or supplier. Fly Fitness aims to notify the franchisee of its decision within 30 days of receiving all necessary information, but a lack of response within this timeframe is considered a disapproval. Fly Fitness also reserves the right to revoke approval of any item or supplier that no longer meets its standards.
Fly Fitness does not disclose its criteria for approving items and suppliers to franchisees. If a franchisee requests approval for a proposed item or supplier, Fly Fitness may charge for the actual costs of product testing and evaluation. While Fly Fitness and its affiliates do not currently receive any revenue, rebates, discounts, or other material consideration from suppliers based on franchisee purchases, they may do so in the future and retain any such benefits at their discretion. Failure to use approved items or designated suppliers and contractors may be a default under the Franchise Agreement, which could lead to suppliers withholding products and services.