What is the minimum population size for a Fly Fitness territory?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Under the Franchise Agreement, you have the right to establish and operate one (1) Fly Fitness outlet within a territory (the "Territory"). You are required to find and obtain possession of a specific location in your Territory for your Franchised Business that meets our site selection standards and our approval. Your Territory is located in all or a portion of a listed town, city, or county, and is identified by a group of contiguous zip codes. The Territory is determined on an individual basis taking into account area demographics and population density. The minimum Territory granted is an area with a minimum population of approximately 20,000. Your Territory will be defined and attached to your Franchise Agreement as Attachment 2. If you do not yet have a location at the signing of the Franchise Agreement, you will receive a non-exclusive site search area list as Attachment 2.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the minimum population size for a territory is approximately 20,000 people. The FDD specifies that the territory is determined on an individual basis, considering area demographics and population density. The territory will consist of a group of contiguous zip codes and will be defined in Attachment 2 of the Franchise Agreement.
This means that when a prospective franchisee signs an agreement with Fly Fitness, they are granted the right to operate a single Fly Fitness outlet within a specific territory. The size and location of this territory are determined by Fly Fitness based on factors like population density. The minimum population threshold ensures that each franchisee has access to a viable customer base.
It is important to note that Fly Fitness does not grant exclusive territories. Franchisees may face competition from other franchisees, company-owned outlets, or other distribution channels. However, Fly Fitness states that they will not open another Fly Fitness outlet or grant the right to anyone else to open one within the franchisee's territory, as long as the franchisee is not in default of the Franchise Agreement. This limited protection is subject to Fly Fitness's right to sell products and services through alternative distribution channels within the territory.