What is the significance of the Fly Fitness Acknowledgment Statement in relation to the Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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. Franchisee (or Developer) further acknowledges that, except as may be set forth in Franchisor's Disclosure Document, no representations of performance (financial or otherwise) for the Franchised Business provided for in this Agreement has been made to Franchisee (or Developer) by Franchisor and Franchisee (or Developer) and any and all Principals hereby waive any claim against Franchisor for any business failure Franchisee (or Developer) may experience as a franchisee (or developer) under this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Acknowledgment Statement serves as an inducement for the franchisor to enter into a Franchise Agreement or Multi-Unit Development Agreement. The document emphasizes the importance of the franchisee's truthfulness in the statements provided. It also requires the franchisee to notify Fly Fitness immediately if any statement is incomplete or incorrect before signing the acknowledgment. This indicates that Fly Fitness places a significant emphasis on the accuracy and completeness of the information provided by the franchisee during the initial stages of the franchise relationship.
Furthermore, the Fly Fitness Acknowledgment Statement explicitly states that no agreement signed by the franchisee can waive claims under state franchise law, including claims related to fraud, or disclaim reliance on statements made by the franchisor. This provision is designed to protect the franchisee's rights and ensures that they are not inadvertently relinquishing legal protections by signing the agreement. It also supersedes any other conflicting terms in any document related to the franchise, reinforcing its importance.
The acknowledgment also requires the franchisee to confirm they have conducted an independent investigation into the financial, operational, and other aspects of the Fly Fitness business. The franchisee also acknowledges that, unless stated otherwise in the Disclosure Document, Fly Fitness has not made any representations of performance (financial or otherwise). The franchisee waives any claims against Fly Fitness for business failure, highlighting the franchisee's responsibility to assess the business's viability independently. This underscores the importance of due diligence on the part of the franchisee before entering into the agreement.