What methods, standards, and specifications must a Fly Fitness franchisee conform to when operating the franchised business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
anchisee and each Principal shall cooperate with Franchisor in any efforts made by Franchisor to verify compliance with such representations, warranties, and covenants.
12. FRANCHISEE'S OPERATIONS.
- 12.1. Operation of Franchised Business Location. To maintain the highest degree of quality and service on a uniform System-wide basis, Franchisee shall operate the Franchised Business in conformity with the methods, standards and specifications prescribed by Franchisor. Franchisee agrees to comply with the Manual, as it is modified from time to time, and all directives, rules and procedures specified by Franchisor, and will, among other things:
- 12.1.1. Use only those furnishings, fixtures, décor, fitness equipment, and signage and program curriculum that conform with Franchisor's specifications and/or which shall be purchased from only those vendors designated and approved by Franchisor. Franchisee acknowledges and agrees that: (i) Franchisor and/or Franchisor's affiliate may be a designated supplier or sole approved supplier of any product or service that Franchisee is required to lease or purchase, (ii) Franchisor and/or Franchisor's affiliate may receive payment from supplier(s) related to Franchisee's required purchases or leases, and (iii) any payments so received are for Franchisor's benefit only and may be used or applied in any manner determined by Franchisor in Franchisor's sole and absolute discretion;
- 12.1.2. Maintain and operate the Franchised Business location in good condition and repair and in a proper and businesslike manner, using Franchisee's best efforts to maintain
a clean, sanitary and respectable atmosphere therein in accordance with System standards, the Manual and all other directives and requirements of Franchisor, and do such redecoration, repairing, refurbishing and restoration as from time to time may be reasonably required to meet System standards and Franchisor's requirements as they may be modified from time to time;
- 12.1.3. Comply with all applicable governmental laws, ordinances, rules and regulations;
- 12.1.4. Maintain sufficient inventories of equipment and products as prescribed by Franchisor and employ sufficient employees as prescribed by Franchisor to operate the Franchised Business at its maximum capacity and efficiency as required by Franchisor. Franchisee may not be open for additional hours or fewer hours or fewer days without prior approval of Franchisor;
- 12.1.5. Conduct sales in accordance with Franchisor's standards and specifications. Franchisee acknowledges and accepts that Franchisee may only engage in providing fitness instruction to end-consumers. Franchisee is expressly prohibited from selling products or services using the Franchised Business operations, assets and/or premises (i) that are not a part of the Fly Fitness System or that are not approved by Franchisor, (ii) outside of the Franchised Business premises (excluding promotional and sales events in the Territory with Franchisor's prior approval), (iii) on the internet (provided that Franchisee may conduct classregistration and payment online through Franchisor's approved platform(s)), or (iv) to dealers and/or distributors for subsequent re-sale. Engaging in such sales shall be a material default of this Agreement;
- 12.1.6. Employ only qualified individuals who are trained in accordance with Franchisor's standards and who will at all times conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System. Within ninety (90) days of hiring, Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) shall obtain personal training certifications issued by a nationally recognized organization approved by Franchisor. In addition to the requirements of Section 7.4 hereof, Franchisee, at Franchisee's sole expense, shall ensure that Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) attend any required continuing education or training programs to maintain their personal training certifications.
- 12.1.7. Permit Franchisor or its agents, to inspect the Franchised Business location and any services, products, or equipment, including removal of same without payment to Franchisee, to determine whether they meet Franchisor's then-current standards, specifications, and requirements.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must operate their franchised business in accordance with the methods, standards, and specifications prescribed by Fly Fitness. This includes complying with the operations manual, which may be modified from time to time, and all directives, rules, and procedures specified by Fly Fitness. Franchisees are required to use only furnishings, fixtures, décor, fitness equipment, signage, and program curriculum that conform to Fly Fitness's specifications and/or are purchased from vendors designated and approved by Fly Fitness. Fly Fitness or its affiliates may be designated suppliers or the sole approved supplier of any product or service that franchisees are required to lease or purchase. Fly Fitness or its affiliates may also receive payments from suppliers related to the franchisee's required purchases or leases, which are for Fly Fitness's benefit only.
Fly Fitness franchisees must maintain and operate the franchised business location in good condition and repair, in a proper and businesslike manner, and maintain a clean, sanitary, and respectable atmosphere in accordance with system standards, the manual, and all other directives and requirements of Fly Fitness. Franchisees must also comply with all applicable governmental laws, ordinances, rules, and regulations. They must maintain sufficient inventories of equipment and products as prescribed by Fly Fitness and employ sufficient employees as prescribed by Fly Fitness to operate the franchised business at its maximum capacity and efficiency as required by Fly Fitness. Franchisees may not be open for additional hours or fewer hours or fewer days without prior approval from Fly Fitness and must conduct sales in accordance with Fly Fitness's standards and specifications.
Furthermore, Fly Fitness franchisees may only engage in providing fitness instruction to end-consumers and are expressly prohibited from selling products or services using the franchised business operations, assets, and/or premises that are not part of the Fly Fitness system or approved by Fly Fitness. Sales outside of the franchised business premises (excluding promotional and sales events in the territory with Fly Fitness's prior approval), on the internet (except for class registration and payment through Fly Fitness's approved platforms), or to dealers and/or distributors for subsequent re-sale are also prohibited. Franchisees must employ only qualified individuals who are trained in accordance with Fly Fitness's standards and who conduct themselves competently and courteously. Coaches must obtain personal training certifications from a nationally recognized organization approved by Fly Fitness within 90 days of hiring and attend continuing education or training programs to maintain their certifications. Fly Fitness or its agents may inspect the franchised business location and any services, products, or equipment to determine whether they meet Fly Fitness's standards, specifications, and requirements.