How is the Fly Fitness territory defined in the Franchise Agreement?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
1. RECITATIONS.
The Recitations set out above form part of this Agreement.
2. GRANT OF FRANCHISE.
Franchisor hereby grants to Franchisee and Franchisee accepts, upon the terms and conditions contained in this Agreement, the license to operate a Fly Fitness franchise (the "Franchise" or the "Franchised Business"), using only the Marks licensed hereunder, in strict conformity with the System, which may be changed, improved, and further developed by Franchisor from time to time. This grant applies only to a single location within a territory that is designated in Attachment 3 attached hereto and incorporated herein (the "Territory").
3. TERRITORY.
- 3.1 Territory. This Agreement grants Franchisee the right to operate the Franchised Business at a single location and from within the Territory. Subject to Section 3.2 below, Franchisor agrees that during the Term of this Agreement, Franchisor will not operate, and will not authorize any other franchisees to operate, a Fly Fitness outlet in the Territory using the same Marks as licensed to Franchisee in this Agreement so long as Franchisee is not in default under this Agreement or this Agreement has not been terminated. Except as otherwise specified in this Agreement, Franchisor reserves the right to open, operate or franchise Fly Fitness franchises bordering and adjacent to the Territory. Except as set forth in this Agreement, Franchisee is prohibited from serving and soliciting customers outside of the Territory and from alternative methods of distribution as more fully specified herein.
- 3.2 Reservation of Rights. Franchisee understands and agrees that all rights to any businesses, other than as specified in this Agreement, are fully reserved to Franchisor within or outside of the Territory. By way of example only, Franchisor reserves the rights to offer (i) other products or services not offered under the Marks, (ii) other fitness concepts under the Marks or other trademarks, and (iii) services and products through any channel in the Territory other than a dedicated Fly Fitness outlet, such as to schools, camps, institutional/professional campuses, and conferences; distribution of products through retail outlets, including but not limited to, grocery, health and fitness outlets; and the Internet ("Alternate Distribution Channels"). Franchisee will receive no compensation for Franchisor's sales through Alternate Distribution Channels made within the Territory. Franchisee agrees that such implementation of Franchisor's rights pursuant to this Section 3.2 is deemed not to impair or injure Franchisee's rights pursuant to Section 2 hereof.
| "(If there is no Approved Location on the Effective Date, insert: **TERRITORY AND ADDRESS | |
|---|---|
| TO BE DETERMINED AND INSERTED AFTER A FLY FITNESS PREMISES IS IDENTIFIED | |
| BY FRANCHISEE AND APPROVED BY FRANCHISOR, IN ACCORDANCE WITH SECTION | |
| 8.1 OF THE FRANCHISE AGREEMENT, IN | THE SITE SEACH AREA OF |
| ) | |
| Territory (insert map and/or define by zip codes, counties, city limits, or physical boundaries such as | |
| roads, highways, and rivers): | |
| Franchised Business Address: | |
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Franchise Agreement grants the franchisee the right to operate their Fly Fitness business at a single location within a defined territory. This territory is designated in Attachment 3 of the agreement. During the term of the agreement, Fly Fitness agrees not to operate or authorize other franchisees to operate a Fly Fitness outlet within the franchisee's territory using the same marks, as long as the franchisee is not in default of the agreement.
However, Fly Fitness reserves the right to open, operate, or franchise Fly Fitness locations bordering and adjacent to the franchisee's territory. The franchisee is generally prohibited from serving or soliciting customers outside of their designated territory and from using alternative methods of distribution, except as specified in the agreement. Fly Fitness retains all rights to businesses other than those specifically granted to the franchisee within or outside the territory.
Fly Fitness also reserves the right to offer other products or services not offered under the Fly Fitness marks, other fitness concepts under the marks or other trademarks, and services and products through alternative channels such as schools, camps, institutional campuses, retail outlets, and the internet. The franchisee will not receive compensation for Fly Fitness's sales through these alternative distribution channels within their territory.
If there is no approved location on the effective date of the agreement, the territory and address will be determined and inserted 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. The territory can be defined by zip codes, counties, city limits, or physical boundaries such as roads, highways, and rivers.