In a Fly Fitness regional cooperative, how many votes does each Fly Fitness outlet have?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Currently, our System has no regional advertising fund or cooperative. However, we may decide to establish a regional fund or cooperative in the future and your participation may be mandatory, in our sole discretion. A regional cooperative will be comprised of all Fly Fitness franchisees in a designated geographic area. Our affiliate-owned outlets may participate in a regional cooperative, in our sole discretion, if we have a Fly Fitness in the area. Each Fly Fitness outlet, whether affiliateowned or franchisee-owned, will have one vote in the cooperative. We will determine in advance how each cooperative will be organized and governed. We have the right to form, dissolve, merge or change the structure of the cooperatives. If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, each Fly Fitness outlet, whether it is affiliate-owned or franchisee-owned, has one vote in a regional cooperative. However, as of the FDD date, Fly Fitness does not currently have any regional advertising funds or cooperatives established within its system.
Fly Fitness retains the sole discretion to establish a regional fund or cooperative in the future, and franchisee participation may be mandatory if one is created. These cooperatives would be comprised of all Fly Fitness franchisees within a specific geographic area, and Fly Fitness may include its affiliate-owned outlets in these cooperatives at its discretion if there is a Fly Fitness in the area.
Fly Fitness also has the right to form, dissolve, merge, or change the structure of these cooperatives. If a cooperative is established during the term of the Franchise Agreement, franchisees are obligated to sign all required documents and become a member of the cooperative according to the specified terms. Franchisees are also required to contribute the amounts that Fly Fitness requires to any established regional advertising fund or cooperative. These contributions are in addition to the required contributions to the Brand Fund; however, contributions made to a regional advertising fund or cooperative will be credited against the franchisee's required expenditures for local advertising.