For Fly Fitness, what training requirements must the Operating Principal satisfy?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
y Franchisee and its Principals; and Franchisor shall have all the same rights and remedies as if the breach occurred through the direct acts or omissions of the Franchisee and/or its named Principals.
- 11.4.2 Franchisee shall be actively involved in the management of the Franchised Business. Notwithstanding the foregoing, Franchisee shall designate and retain at all times an Operating Principal (the "Operating Principal") to be primarily responsible for and exercise decision-making authority on behalf of the Franchised Business. The Operating Principal shall be Franchisee, if Franchisee is an individual, or a Principal that owns at least ten percent (10%) equity interest in Franchisee if Franchisee is a business entity. Franchisee shall designate its Operating Principal prior to attending the Initial Training Program. The Operating Principal shall, during the entire period he or she serves as Operating Principal, meet the following qualifications:
- (i) Meet all Franchisor's standards and criteria for such individual(s), as set forth in the Manual or otherwise in writing by Franchisor and shall be an individual otherwise acceptable to Franchisor in its sole discretion.
- (ii) Shall devote his or her full time and best efforts to the supervision and management of the Franchised Business and may not engage in any other business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
- (iii) Satisfy the training requirements set forth in Article 7.
- 11.4.3 Notwithstanding the requirements of Section 11.4.2, Franchisee may also designate and retain at all times a general manager (the "General Manager") to direct the daily operation and management of the Franchised Business. The General Manager may be Franchisee, if Franchisee is an individual, or a Principal. Franchisee shall designate its General Manager prior to attending the Initial Training Program. The General Manager shall, during the entire period he or she serves as General Manager, meet the following qualifications:
- (i) Meet Franchisor's standards and criteria for such individual(s), as set forth in the Manual or otherwise in writing by Franchisor, and shall be an individual otherwise acceptable to Franchisor in its sole discretion.
- (ii) Shall devote his or her full time and best efforts to the daily operation of the Franchised Business, and may not engage in any other business activity without Franchisor's consent, which may be withheld in Franchisor's sole discretion.
- (iii) Satisfy the training requirements set forth in Article 7.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Operating Principal must meet specific qualifications and training requirements. The Operating Principal, who must be either the franchisee (if an individual) or a principal owning at least 10% equity in the franchisee (if a business entity), must be designated prior to attending the Initial Training Program.
The Operating Principal must meet all of Fly Fitness's standards and criteria, as detailed in the Manual or in writing by Fly Fitness, and must be acceptable to Fly Fitness at their discretion. They are required to devote their full time and best efforts to supervising and managing the Franchised Business, and cannot engage in other business activities without Fly Fitness's consent.
Critically, the Operating Principal must satisfy the training requirements outlined in Article 7 of the franchise agreement. If the Operating Principal cannot continue in their role or no longer qualifies, the franchisee must notify Fly Fitness and designate a replacement within 30 days, ensuring the replacement meets all qualifications, including completing required training and certifications. Failure to comply with these requirements constitutes a material default under the agreement, and Fly Fitness may provide interim management support at the franchisee's expense until a qualified replacement is found.