Can a Fly Fitness manager have a business relationship with any of Fly Fitness's competitors?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The Franchise Agreement requires that you personally supervise your Fly Fitness outlet. Your Fly Fitness outlet must be directly supervised by a general manager who is either the Franchisee or, if the Franchisee is an entity, at least a 10% shareholder in the franchisee entity. Your general manager must successfully complete our Initial Management Training Program and all other training courses we require. If the franchisee is a business entity, your general manager is not required to have an equity interest in the franchisee entity. Your manager must devote full time to the job and cannot have an interest or business relationship with any of our competitors.
Your manager and all other personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure/Non-Competition Agreement, which is attached to our Franchise Agreement as Attachment 8. If your Franchised Business is owned by an entity, all owners of the entity must personally sign the Franchise Agreement as a Principal. If you are a married individual, your spouse must sign our Personal Guaranty, which is attached to our Franchise Agreement as Attachment 7.
Source: Item 15 — OBLIGATIONS OF THE FRANCHISEE TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 33)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the general manager of a Fly Fitness outlet is prohibited from having any business relationship with Fly Fitness competitors. The FDD specifies that the Fly Fitness outlet must be directly supervised by a general manager who is either the franchisee or, if the franchisee is an entity, at least a 10% shareholder in the franchisee entity.
Fly Fitness requires that the general manager devote their full time to the Fly Fitness business. This requirement ensures that the manager's focus remains solely on the success of the Fly Fitness location.
To further protect Fly Fitness's interests, the manager, along with any personnel with access to proprietary or confidential information, must sign a Non-Disclosure/Non-Competition Agreement. This agreement, attached to the Franchise Agreement, legally binds the manager to protect Fly Fitness's confidential information and refrain from engaging in competitive activities.