How many Fly Fitness franchised businesses can a developer establish in the Development Area?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor hereby grants to Developer, and the Developer hereby accepts from the Franchisor, on the terms and conditions set forth in this Agreement, which includes, but is not limited to, the execution of a Franchise Agreement pursuant to Section 4.1 hereof, the right to develop, construct, open and operate one Franchised Business within the Development Area set forth in Attachment 3.
Developer shall be granted rights to establish additional Franchised Businessesin the Development Area, up to the total number of outlets set forth in the Mandatory Development Schedule set forth in Section 5.2 hereof, subject to Developer's full compliance with all conditions precedent to the grant of such rights outlined below, which rights shall be exercised in accordance with Section 4.1 hereof.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer is granted the right to develop, construct, open, and operate one franchised business within the Development Area as outlined in Attachment 3, contingent upon executing a Franchise Agreement as per Section 4.1. The developer may be granted rights to establish additional Franchised Businesses in the Development Area, up to the total number of outlets specified in the Mandatory Development Schedule in Section 5.2, provided they fully comply with all conditions.
This means that while the initial agreement grants rights for one Fly Fitness location, the developer has the potential to expand within their designated area. The exact number of additional locations hinges on meeting specific conditions and adhering to the Mandatory Development Schedule. This schedule likely outlines milestones or performance metrics that the developer must achieve to earn the right to open further Fly Fitness franchises.
For a prospective developer, it's crucial to carefully review Attachment 3 to understand the boundaries of the Development Area and Section 5.2 to understand the Mandatory Development Schedule. Understanding these documents will clarify the potential for expansion and the specific requirements that Fly Fitness places on developers to earn those expansion rights. A prospective franchisee should discuss the details of the development schedule with Fly Fitness to fully understand the expectations and required timelines for opening multiple locations.