Are replacement Operating Principals and General Managers for a Fly Fitness franchise subject to the same qualifications as the original?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4.4 If either the Operating Principal or the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the Operating Principal or the General Manager, as the case may be, ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).
Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement.
Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement.
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements.
Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if either the Operating Principal or the General Manager is unable to continue in their role or no longer qualifies, the franchisee must promptly notify Fly Fitness and designate a replacement within 30 days. This replacement is subject to the same qualifications required by the Franchise Agreement, including completing all training and obtaining all certifications required by Fly Fitness. Until a replacement is designated, the franchisee must provide interim management that adheres to the terms of the agreement. Failure to comply with these requirements constitutes a material event of default under the agreement.
Fly Fitness, at its discretion, may provide interim management support and charge the franchisee a fee until a replacement Operating Principal or General Manager is properly trained and certified. The franchisee is responsible for paying this interim management support fee, along with all costs of travel, lodging, meals, and other expenses incurred by Fly Fitness. These amounts can be charged upon written demand or withdrawn from the franchisee's designated bank account.
This requirement ensures that all individuals in key management positions within a Fly Fitness franchise meet the brand's standards for competence and training, maintaining consistency and quality across all locations. Prospective franchisees should be aware of these stipulations, as failure to adhere to them can lead to financial penalties and potential default on the Franchise Agreement. It is common practice in franchising to have specific requirements for key personnel to protect brand standards and operational efficiency.