Who is responsible for negotiating a purchase or lease for an approved Fly Fitness site?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Before you open your Franchised Business, we will:
- a. provide you with site selection guidelines and approve a location for your Franchised Business. Within three (3) months of signing the Franchise Agreement, you must submit a written request for approval to us describing the proposed location and providing other information about the site that we reasonably request. We will respond within fifteen (15) business days, either accepting or rejecting the proposed location. We consider the following factors in approving a site: general location and neighborhood, distance from neighboring franchise territories, proximity to major roads and residential areas, traffic patterns, condition of premises, tenant mix, and demographic characteristics of the area. If you do not identify a site that meets our approval within three (3) months of signing the Franchise Agreement, we reserve the right to terminate the Franchise Agreement. We will not own and/or lease a site to you. You are responsible for negotiating a purchase or lease with the owner of a site we approve. (Franchise Agreement, Sections 8.1.2, 8.1.3,10.1).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–29)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for negotiating the purchase or lease of an approved site. Fly Fitness will provide site selection guidelines and approve a location, but the franchisee must submit a written request for approval within three months of signing the Franchise Agreement. This request should include information about the proposed location. Fly Fitness will then respond within 15 business days, either accepting or rejecting the site.
Fly Fitness considers factors such as the general location, neighborhood, distance from other franchise territories, proximity to roads and residential areas, traffic patterns, condition of the premises, tenant mix, and demographic characteristics when approving a site. If a franchisee fails to secure an approved site within three months of signing the agreement, Fly Fitness reserves the right to terminate the Franchise Agreement.
This means that while Fly Fitness offers guidance and final approval on location, the onus is on the franchisee to find a suitable site and negotiate the terms of the purchase or lease. This is a fairly standard arrangement in franchising, as it allows the franchisee to have more control over their specific location and lease terms, while still ensuring that the location meets the franchisor's standards.