Can the Fly Fitness territory be defined by city limits?

According to Fly Fitness's 2024 Franchise Disclosure Document, the territory granted to a franchisee can be defined by city limits, among other options. The agreement grants the franchisee the right to operate their Fly Fitness business at a single location within the defined territory. Fly Fitness agrees not to operate or authorize other franchisees to operate a Fly Fitness outlet using the same marks within the franchisee's territory during the term of the agreement, provided the franchisee is not in default. However, Fly Fitness retains the right to open or franchise businesses bordering or adjacent to the franchisee's territory. Franchisees are prohibited from serving or soliciting customers outside their territory.

The document specifies that the territory can be defined using various methods, including zip codes, counties, physical boundaries like roads, highways, and rivers, in addition to city limits. This flexibility allows for tailoring the territory to specific market conditions and demographic factors. The specific territory and franchised business address are to be determined and inserted into the agreement after a Fly Fitness premises is identified by the franchisee and approved by Fly Fitness, in accordance with Section 8.1 of the Franchise Agreement, in the site search area.

It is important to note that Fly Fitness reserves certain rights within and outside the territory, such as offering other products or services not offered under the Fly Fitness marks, other fitness concepts under the marks, and services/products through alternative channels like schools, retail outlets, and the Internet. Franchisees will not receive compensation for Fly Fitness's sales through these alternative distribution channels within their territory. This reservation of rights could potentially impact a franchisee's revenue, as Fly Fitness can engage in activities that compete with the franchisee's business within the same territory through different channels.