What rights does Fly Fitness license to others through Franchise Agreements?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Through the expenditure of considerable time, effort and money, Franchisor has developed and established unique and distinctive fitness boutique fitness studio concept offering mainly group fitness classes, but also semi-private, and private sessions in a non-judgmental environment, using Franchisor's format, trade dress, marketing, operations and management methods, training and assistance, Franchisor's confidential operations manual ("Manual") of business practices and policies, and Franchisor's distinctive, décor, fixtures and furnishings, operations methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs, all of which may be changed, improved or further developed by Franchisor at any time (taken together herein the "System").
The System is identified by certain trade names, service marks**,** trademarks, logos, emblems and indicia of origin, including but not limited to the Fly Fitness service marks, as set forth in Attachment 2, and such other trade names, service marks, and trademarks as are now designated and may hereafter be designated or substituted by Franchisor for use in connection with the System (the "Marks").
Franchisor continues to develop, use, and control the use of such Marks in order to identify for the public the source of services and products marketed under the Marks and the System and to represent the System's high standards of quality, appearance, and service.
Pursuant to franchise agreements, Franchisor licenses to others the right to operate Franchised Businesses, using the Marks and System, in strict conformity therewith, which may be changed, improved and further developed by Franchisor from time to time (each a "Franchise Agreement").
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchise agreement grants franchisees the right to operate a Fly Fitness franchised business using Fly Fitness's system and marks. This includes the use of their unique fitness boutique concept, trade dress, marketing, operational and management methods, confidential operations manual, distinctive décor, fixtures, furnishings, operational methods, sales techniques, inventory, procedures for management control and training, assistance, advertising, and promotional programs. These elements collectively form the 'System'.
Fly Fitness franchisees are also granted the right to use the brand's trade names, service marks, trademarks, logos, emblems, and indicia of origin, including the Fly Fitness service marks. Fly Fitness retains the right to modify, improve, or further develop the System and Marks at any time. Franchisees must operate their franchised businesses in strict conformity with the System and Fly Fitness's standards.
It is important to note that the development agreement itself does not grant the developer the right to operate a franchised business or use the Fly Fitness marks. These rights are only conferred upon the execution of a separate Franchise Agreement, contingent on fulfilling specific conditions outlined in the development agreement. This two-step process ensures that developers meet Fly Fitness's criteria before being granted the full rights and responsibilities of a franchisee.