What pre-opening procedures are outlined for a new Fly Fitness franchise?

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

Except as listed below, we are not required to provide you with any assistance.

1. Pre-Opening Obligations

Before you open your Franchised Business, we will:

• a. provide you with site selection guidelines and approve a location for your Franchised Business. Within three (3) months of signing the Franchise Agreement, you must submit a written request for approval to us describing the proposed location and providing other information about the site that we reasonably request. We will respond within fifteen (15) business days, either accepting or rejecting the proposed location. We consider the following factors in approving a site: general location and neighborhood, distance from neighboring franchise territories, proximity to major roads and residential areas, traffic patterns, condition of premises, tenant mix, and demographic characteristics of the area. If you do not identify a site that meets our approval within three (3) months of signing the Franchise Agreement, we reserve the right to terminate the Franchise Agreement. We will not own and/or lease a site to you. You are responsible for negotiating a purchase or lease with the owner of a site we approve. (Franchise Agreement, Sections 8.1.2, 8.1.3,10.1).
• b. provide you with guidance for the layout, design, appearance, and signage for your Fly Fitness outlet. You, your architect, and your contractor are required to draw plans and specifications for the construction of your premises and obtain permits. We do not draw plans or obtain permits for you. (Franchise Agreement, Section 8.2.1, 8.2.2).
• c. loan to you the Fly Fitness Operations Manual and other manuals and training aids we designate for use in the operation of your Fly Fitnessfranchise, as they may be revised from time to time (Franchise Agreement, Section 10.3).
• d. provide a written list of equipment, fixtures, furnishings, signage, supplies and products that will be required to open the Franchised Business. We and our affiliates do not deliver or install any of these items (Franchise Agreement, Section 10.5).
• e. subject to applicable law, set minimum and maximum prices for products and services at your Fly Fitness outlet (Franchise Agreement, Section 12.5).
• f. provide you with initial training. We will determine, in our sole discretion, whether you satisfactorily complete the initial training. (Franchise Agreement, Sections 7.1, 7.2).
• g. provide you with standards for qualifications and training of your employees. We do not otherwise assist you with employee hiring and training (Franchise Agreement, Section 12.1.5).

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

B. PRE-OPENING PROCEDURES

Introduction

Pre-Opening Timeline and Checklist

Detailed Opening Timeline Breakout

Establishment of Business Form

Setting Up Your Fly Fitness Studio

Site Selection Criteria Site Acceptance Process Lease Considerations Building-Out the Studio Design Specifications

Required List of Equipment and Initial Inventory of Supplies

Technology Fitness & Studio Equipment Studio Finishes Audio Equipment

Contracting with Required Utilities and Services

Obtaining Required Licenses and Permits

Setting Up Bank Accounts

Procuring Required Insurance Policies

Meeting Your Tax Obligations

Establishing a Pre-Sales Strategy

Conducting a Grand Opening

Grand Opening Timeline of Activities Planning the Event Performing the Event

At the opening of your Franchised Business, we will provide a trainer for on-site training, supervision and assistance with daily operations and local marketing and grand opening. On-site training will be for up to five (5) days at no additional cost to you.

[Item 11: FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING]

2. Time to Open

We estimate the typical length of time between the signing of the Franchise Agreement and the time you open your Fly Fitness outlet is six to nine (6-9) months. Factors that may affect this time period include your ability to acquire a site, financing, zoning, or other permits; compliance with local ordinances and restrictions; shortages for construction; delivery and installation of fixtures, signs and equipment, and completion of required training. If you have not opened your Franchised Business within twelve (12) months after you sign the Franchise Agreement, or within six (6) months of us approving your location, you must obtain our consent to extend the time to open, which we may or may not grant, at our discretion. Failure to open your Franchised Business within the original time as extended, is a default of the Franchise Agreement. (Franchise Agreement, Sections 8.1.2, 8.3 and 8.4)

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)