For Fly Fitness, what is the Operating Principal primarily responsible for?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.2 Franchisee shall be actively involved in the management of the Franchised Business. Notwithstanding the foregoing, Franchisee shall designate and retain at all times an Operating Principal (the "Operating Principal") to be primarily responsible for and exercise decision-making authority on behalf of the Franchised Business. The Operating Principal shall be Franchisee, if Franchisee is an individual, or a Principal that owns at least ten percent (10%) equity interest in Franchisee if Franchisee is a business entity. Franchisee shall designate its Operating Principal prior to attending the Initial Training Program. The Operating Principal shall, during the entire period he or she serves as Operating Principal, meet the following qualifications:
- (i) Meet all Franchisor's standards and criteria for such individual(s), as set forth in the Manual or otherwise in writing by Franchisor and shall be an individual otherwise acceptable to Franchisor in its sole discretion.
- (ii) Shall devote his or her full time and best efforts to the supervision and management of the Franchised Business and may not engage in any other business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
- (iii) Satisfy the training requirements set forth in Article 7.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Operating Principal is primarily responsible for exercising decision-making authority on behalf of the Franchised Business. If the franchisee is an individual, the Operating Principal will be the franchisee. If the franchisee is a business entity, the Operating Principal must be a Principal that owns at least ten percent equity interest in Franchisee.
The Operating Principal must meet Fly Fitness's standards and criteria, as detailed in the Manual or in writing by Fly Fitness. The individual must also be acceptable to Fly Fitness in its sole discretion. Furthermore, the Operating Principal is required to devote their full time and best efforts to supervising and managing the Fly Fitness franchise. They are prohibited from engaging in any other business activity without Fly Fitness's consent, which may be withheld at Fly Fitness's discretion.
In addition to these requirements, the Operating Principal must also satisfy the training requirements outlined in Article 7 of the Franchise Agreement. This ensures that the Operating Principal is well-equipped to manage the franchise effectively and in accordance with Fly Fitness's standards. Franchisees must designate their Operating Principal prior to attending the Initial Training Program.