What representation does a Fly Fitness franchisee make as an inducement for the franchisor to enter the agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| FRANCHISOR: |
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| FLY FITNESS FRANCHISE, L.L.C. |
| By: |
| , |
| (Print Name, Title) |
| FRANCHISEE (Entity): |
| By: |
| , |
| (Print Name, Title) |
| FRANCHISEE (Principal): |
| (Print Name) |
| FRANCHISEE (Principal): |
| (Print Name) |
EXHIBIT G
FLY FITNESS ACKNOWLEDGEMENT STATEMENT
Acknowledgement of the truthfulness of the statements below are an inducement for the Franchisor to enter into a Franchise Agreement (or Multi-Unit Development Agreement). Notify Franchisor immediately, prior to acknowledgment, if any statement below is incomplete or incorrect.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee (or developer) in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
- Franchisee (or Developer) has conducted an independent investigation of all aspects relating to the financial, operational, and other aspects of the business of operating the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee's acknowledgement of the truthfulness of certain statements serves as an inducement for Fly Fitness to enter into a Franchise Agreement or Multi-Unit Development Agreement. These statements, outlined in Exhibit G, require the franchisee to confirm they have conducted an independent investigation of all aspects related to the financial, operational, and other facets of operating the Franchised Business. The franchisee must notify Fly Fitness immediately if any statement is incomplete or incorrect prior to acknowledgement.
Specifically, the franchisee acknowledges that, except as set forth in Fly Fitness's Disclosure Document, no representations of performance (financial or otherwise) for the Franchised Business have been made by Fly Fitness. The franchisee and any principals waive any claim against Fly Fitness for any business failure they may experience as a franchisee under the Agreement. This acknowledgement is initialed by the franchisee, signifying their understanding and agreement.
Furthermore, the franchisee acknowledges they have conducted an independent investigation of the business contemplated by the Agreement. They understand and acknowledge that the business involves risks, and the success of the venture largely depends on their business abilities, participation, and efforts as an independent business operation. This acknowledgement is also initialed by the franchisee. This acknowledgement ensures that Fly Fitness is entering the agreement with the understanding that the franchisee has done their due diligence and is aware of the risks involved.