Can Fly Fitness require franchisees to enter into specific software license agreements?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
d that, this license shall automatically and irrevocably terminate, without any additional action or notice required by Franchisor, upon the expiration or earlier termination of this Agreement.
- 12.3.4. Franchisor may require Franchisee, at Franchisee's sole expense, to enter into software license agreements in the form that Franchisor requires for software Franchisor develops or acquires for use in the System.
- 12.3.5. Franchisee shall have and maintain adequate hardware and software in order to access the Internet at the speed required by Franchisor from time to time. Franchisee shall utilize the electronic mail account provided by Franchisor. Franchisee shall promptly read and respond to all electronic mail related to the Franchised Business no less often than on a daily basis and shall accept and acknowledge receipt of all electronic mail sent by Franchisor. Franchisee shall not
- establish any website or other listing on the Internet except as provided and specifically permitted herein.
- 12.3.6. Franchisor has established a website that provides information about the System and the services and products offered by the Fly Fitness System (the "Website"). Franchisor has sole discretion and control over the Website. Franchisor shall include a listing on its Website linking Franchisee's Franchised Business location. Franchisee has no ownership or other proprietary rights to Franchisor's website and Franchisee will lose all rights to such link to Franchisee's location upon expiration or termination of this Agreement for any reason.
- 12.3.7.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness has the right to require franchisees to enter into specific software license agreements. The franchisee bears the expense of these agreements, which must be in the form that Fly Fitness requires for software it develops or acquires for use in its system.
Fly Fitness also mandates that franchisees maintain adequate hardware and software to access the internet at the speed it requires. Franchisees must use the electronic mail account provided by Fly Fitness and promptly respond to all emails related to the franchised business on a daily basis, acknowledging receipt of all emails sent by Fly Fitness. Franchisees are prohibited from establishing any website or internet listing unless specifically permitted by Fly Fitness.
Furthermore, franchisees are responsible for all fees and expenses related to technology required for operating the franchised business. This includes costs for computer hardware and software, applications, installation, recurring fees for software and digital menu displays, internet access, license fees, help desk fees, and licensing or user-based fees. Franchisees are also solely responsible for maintaining the security and integrity of their computer and payment processing systems, as well as the data stored within them.
These stipulations highlight the importance of technology in the Fly Fitness franchise system and the franchisee's responsibility for maintaining and securing it. Prospective franchisees should carefully consider these technology requirements and associated costs when evaluating the franchise opportunity.