What is the Mandatory Development Schedule for Fly Fitness, and where can it be found in the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ved and further developed by Franchisor from time to time (each a "Franchise Agreement").
Developer understands and acknowledges the importance of Franchisor's high and uniform standards of quality, service, and appearance, and the necessity of operating franchised businesses of the System in conformity with Franchisor's standards and specifications.
Developer desires to obtain the right to further develop and expand the System in accordance with the development schedule described in Section 5.2 hereof (the "Mandatory Development Schedule") within the development area described in Attachment 3 (the "Development Area"), under the System and Marks, on the terms and conditions set forth in this Agreement;
NOW, THEREFORE, the parties, in consideration of the promises, undertakings and commitments of each party to the other set forth herein, and intending to be legally bound hereby, mutually agree as follows:
1. RECITATIONS. The Recitations set out above form part of this Agreement.
**2.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Mandatory Development Schedule is referenced in Sections 2.1 and 5.2 of the Multi-Unit Development Agreement, as well as in the recitals. This schedule dictates the timeline within which a developer must establish additional Fly Fitness Franchised Businesses within their designated Development Area.
The developer's right to establish additional franchised businesses is contingent upon full compliance with all conditions outlined in the agreement. These rights must be exercised in accordance with Section 4.1 of the agreement. The development rights are exercised by entering into a separate Franchise Agreement with Fly Fitness for each Franchised Business.
Failure to adhere to the Mandatory Development Schedule can have significant consequences, potentially leading to a default under the agreement. In the event of the developer's death or permanent disability, the Fly Fitness outlet(s) and remaining development schedule will be supervised by an interim successor manager approved by Fly Fitness. Alternatively, Fly Fitness may provide interim management, taking 20% of the Gross Revenue plus expenses. Prospective developers should carefully review the full Multi-Unit Development Agreement and attachments to fully understand the terms and conditions of the Mandatory Development Schedule.