What prior agreements are superseded by the Fly Fitness franchise agreement?

Based on the 2024 Fly Fitness Franchise Disclosure Document, the Multi-Unit Development Agreement does not grant the developer the right to operate a Fly Fitness franchised business. The agreement solely grants the right to develop, construct, and open Fly Fitness locations within a specific development area, subject to the terms and conditions outlined in the agreement, including the execution of a Franchise Agreement. The developer must comply with the Mandatory Development Schedule to maintain these rights.

According to the FDD, the Multi-Unit Development Agreement is not a Franchise Agreement and does not grant the developer any right or license to operate a Franchised Business, distribute any product or service, or use the Marks. The developer acknowledges that to operate a Fly Fitness franchise, they must enter into a separate Franchise Agreement.

This distinction is important for prospective franchisees as it clarifies that signing the Multi-Unit Development Agreement is only the first step in establishing Fly Fitness franchises. Additional Franchise Agreements are required for each location, and the developer must meet specific obligations to maintain their development rights. The initial $50,000 development fee is earned upon signing the Multi-Unit Development Agreement and is non-refundable.