When relocating a Fly Fitness franchise, what must the franchisee remove from the original location?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall not relocate the
Franchised Business at any time without Franchisor's written approval, which approval shall be granted only in the sole and complete discretion of Franchisor, and if permitted, shall be at Franchisee's sole expense, and subject to the following:
- 8.4.1. Franchisee shall select a site and construct the new premises in accordance with the provisions of Sections 8.1 and 8.2 hereof and to conform to Franchisor's thencurrent specifications for design, appearance, and leasehold improvements for new Franchised Businesses;
- 8.4.2. Franchisee shall remove any signs or other property from the original Franchised Business location which identified the original Franchise Business location as part of the System;
- 8.4.3. Franchisee agrees that, during the build-out, decorating and furnishing of the new location, and at Franchisor's sole and absolute discretion: (i) the term of this Agreement shall not be abated, and (ii) Franchisee shall remain liable to pay a minimum Royalty Fee and Brand Fund Contribution that is equal to the average amount paid by Franchisee during the four (4) calendar quarters immediately preceding the date that operations cease or the shorter period that Franchisee had been in business at the original Franchised Business location;
- 8.4.4. Franchisor shall issue a revised Attachment 3, in accordance with Section 8.1.4, to reflect the address of the new Franchised Business location.
- 8.4.5. Franchisee shall pay Franchisor, upon Franchisor's consent to Franchisee's request to relocate, a relocation fee equal to twenty-five percent (25%) of the then-current Initial Fee charged new franchisees.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must remove any signs or other property that identifies the original location as part of the Fly Fitness system when relocating their franchise.
Relocating a Fly Fitness franchise is not guaranteed, as it requires written approval from Fly Fitness, which can be granted or denied at their sole discretion. If relocation is approved, the franchisee is responsible for selecting a new site and constructing the premises to meet Fly Fitness's current standards for design, appearance, and leasehold improvements.
During the relocation process, the franchisee is still obligated to pay a minimum Royalty Fee and Brand Fund Contribution. This amount is equal to the average paid during the four calendar quarters before ceasing operations at the original location, or the actual period of operation if shorter. Additionally, upon approval of the relocation request, the franchisee must pay Fly Fitness a relocation fee equal to 25% of the then-current initial franchise fee charged to new franchisees.