What are the requirements for a Fly Fitness developer's extension request to be considered timely?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 5.3 Extension of Mandatory Development Schedule. If Developer is unable to meet the Mandatory Development Schedule for any Franchised Business, Developer may seek a onetime six (6) month extension of the Mandatory Development Schedule from Franchisor. Any request for an extension must be in writing and submitted to Franchisor at least sixty (60) days prior to the Mandatory Open Date for such outlet. Franchisor shall not unreasonably withhold consent for such reasonable extension provided that Developer has (i) submitted its extension request in a timely manner; (ii) demonstrated diligent efforts to meet the original Mandatory Open Date; and (iii) has at all times acted in good faith and is otherwise fulfilling its obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a developer seeking an extension of the Mandatory Development Schedule must submit a written request to Fly Fitness at least sixty (60) days prior to the Mandatory Open Date for the outlet in question.
This requirement ensures that Fly Fitness has sufficient time to review the request and assess whether the developer has made diligent efforts to meet the original schedule and has acted in good faith. Meeting this deadline is crucial, as it is one of the conditions Fly Fitness considers when deciding whether to grant the extension.
Failure to submit the extension request in a timely manner, specifically less than 60 days before the Mandatory Open Date, could result in Fly Fitness denying the request. This could lead to a default under the Multi-Unit Development Agreement. Therefore, developers must carefully track their progress and adhere to the stipulated timelines to maintain compliance and avoid potential penalties.