Under what conditions can a Fly Fitness franchisee relocate their business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, within 60 days. If you do not identify a site within this time period, we may terminate the Franchise Agreement. While you are closed for relocation, you must continue to pay us a minimum Royalty and Brand Fund contribution equal to the average paid during the four (4) calendar quarters immediately preceding the loss of your premises. Should we consent to your relocation, you will be required to pay us a relocation fee equal to twenty-five percent (25%) of the then-current initial franchise fee.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee cannot relocate their business without Fly Fitness's written consent, which Fly Fitness may withhold at its discretion. Fly Fitness may allow relocation if the franchisee lost their premises for reasons that were not their fault. Other conditions Fly Fitness considers are the demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability.
To relocate, a Fly Fitness franchisee must identify a new location that meets Fly Fitness's approval based on their current site selection procedures within 60 days. If the franchisee fails to do so, Fly Fitness may terminate the Franchise Agreement. While the Fly Fitness location is closed for relocation, the franchisee must continue to pay a minimum Royalty and Brand Fund contribution equal to the average paid during the four calendar quarters immediately preceding the loss of the premises.
Should Fly Fitness consent to the relocation, the franchisee must pay a relocation fee equal to 25% of the then-current initial franchise fee. This is a notable expense to consider, as it could significantly impact the financial viability of relocating. The relocation conditions are fairly standard in the franchise industry, as franchisors typically want to maintain control over location decisions to protect brand consistency and market strategy.