What is the procedure for a Fly Fitness franchisee to request a relocation of their Franchised Business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, within 60 days. If you do not identify a site within this time period, we may terminate the Franchise Agreement. While you are closed for relocation, you must continue to pay us a minimum Royalty and Brand Fund contribution equal to the average paid during the four (4) calendar quarters immediately preceding the loss of your premises. Should we consent to your relocation, you will be required to pay us a relocation fee equal to twenty-five percent (25%) of the then-current initial franchise fee.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee cannot change the location of their Franchised Business without Fly Fitness's written consent, which Fly Fitness may withhold at its discretion. If a franchisee wants to relocate, they must identify a new location that meets Fly Fitness's approval, following the then-current site selection procedures, within 60 days. Failure to identify a suitable site within this timeframe may result in the termination of the Franchise Agreement.
During the relocation period, even while the business is closed, the franchisee must continue to pay Fly Fitness a minimum Royalty and Brand Fund contribution. This payment is equivalent to the average paid during the four calendar quarters immediately preceding the loss of the premises.
Should Fly Fitness consent to the relocation, the franchisee is required to pay a relocation fee equal to twenty-five percent (25%) of the then-current initial franchise fee. The FDD outlines several conditions under which Fly Fitness may allow relocation, including loss of premises not due to the franchisee's default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability.