What is the procedure for a Fly Fitness franchisee to obtain a specific location for their Franchised Business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Closeouts Sample Non Disclosure Sample
ITEM 12: TERRITORY
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.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
During the term of your Franchise Agreement, and provided that you are not in default of your Franchise Agreement, we will not open another Fly Fitness outlet or grant the right to anyone else to open a Fly Fitness outlet within the Territory. However, notwithstanding this limited protection right we grant to you, we reserve all rights to sell our products and services under the Marks in the Territory through alternative distribution channels, as discussed below. There is no minimum sales requirement, market penetration, or other contingency that will affect your limited protected right to operate in the Territory during the term of your Franchise Agreement, unless you are in default of your obligations to us.
You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, securing a location is a necessary step for franchisees. The franchisee is responsible for finding and obtaining possession of a location for their Fly Fitness franchise that meets Fly Fitness's site selection standards, which are subject to Fly Fitness's approval.
The territory granted to a Fly Fitness franchisee is determined on an individual basis, considering area demographics and population density. The minimum territory size is an area with a population of approximately 20,000. The specific territory details will be defined in Attachment 2 of the Franchise Agreement. If a franchisee does not have a location identified when signing the Franchise Agreement, they will receive a non-exclusive site search area list as Attachment 2.
Fly Fitness requires written consent for any relocation of the Franchised Business, which Fly Fitness may withhold at its discretion. Conditions for relocation approval include loss of premises (not due to franchisee default), demographics, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, access, proximity to major roads, available parking, and overall suitability. If a franchisee wishes to relocate, they must identify a new location that meets Fly Fitness's approval within 60 days, following the then-current site selection procedures. Failure to do so may result in termination of the Franchise Agreement. During relocation, the franchisee must continue to pay a minimum Royalty and Brand Fund contribution equal to the average paid during the four calendar quarters preceding the loss of the premises. If Fly Fitness consents to the relocation, the franchisee must pay a relocation fee equal to 25% of the then-current initial franchise fee.