What is the 'Opening Date' defined as for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The date the Franchised Business opens for business to the public shall be defined herein as the "Opening Date".
Prior to the Opening Date, Franchisee shall (i) complete all exterior and interior preparations for the Franchised Business, including installation and cleaning of equipment, fixtures, furnishings and signs, in accordance with System requirements and the plans and specifications consented to by Franchisor, (ii) satisfactorily complete Franchisor's Initial Management Training Program, as further set forth in Article 7, (iii) hire and train staff, if required, and (iv) obtain all required licenses to operate the Franchised Business.
If Franchisee fails to comply with any of such obligations, Franchisor shall have the right to prohibit Franchisee from opening for business.
Franchisee's failure to open the Franchised Business and commence operations (i) in accordance with the foregoing and (ii) within the above time frame shall be deemed a material event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the "Opening Date" is defined as the date the franchised business opens its doors to the public. Franchisees must meet several requirements before this date, including completing all interior and exterior preparations, installing and cleaning equipment, and finishing the initial management training program. They also need to hire and train staff and obtain all required licenses.
Fly Fitness requires franchisees to notify them at least 30 days before construction or remodeling is completed. Opening the franchise for business requires written authorization from Fly Fitness, which is conditional upon the franchisee's compliance with the franchise agreement. Failure to meet these obligations can result in Fly Fitness prohibiting the franchisee from opening the business.
Fly Fitness emphasizes that time is of the essence, requiring franchisees to open within six months after the location is approved or one year from the agreement's effective date, whichever is less, unless a written extension is granted. Failure to open within this timeframe is considered a material breach of the agreement. The franchisee's right to operate is limited to the location specified in the franchise agreement, with no relocation permitted.