For Fly Fitness, what is the trigger event that requires the Developer to execute an additional Franchise Agreement for the development of the next Franchised Business?

According to Fly Fitness's 2024 Franchise Disclosure Document, after signing the Multi-Unit Development Agreement and the initial Franchise Agreement, a Developer is required to execute an additional Franchise Agreement for the subsequent Fly Fitness location when they execute a lease for their first Franchised Business. This is contingent upon satisfying or waiving all conditions outlined in Section 5.4 of the agreement.

For each subsequent Fly Fitness location, the trigger event remains consistent: the execution of a lease for the next Franchised Business. Upon executing the lease, the Developer must then execute an additional Franchise Agreement for that location, again provided that all conditions in Section 5.4 are either satisfied or waived.

This process ensures that Fly Fitness maintains control over its expansion and that each new location is properly authorized through a formal agreement. It also allows Fly Fitness to present the Developer with the then-current Franchise Disclosure Document and Franchise Agreement, which may differ from the initial agreement, ensuring the Developer is up-to-date with any changes in the franchise terms. This is a fairly standard practice in multi-unit franchise development agreements, as it allows the franchisor to adapt the franchise agreement over time.

It is important for prospective Fly Fitness developers to understand these requirements and the conditions in Section 5.4, as failing to meet these conditions could delay or prevent the opening of subsequent locations. Developers should also be aware that they will not receive additional training for each new location, as the initial training is deemed sufficient.