Under what conditions can Fly Fitness provide interim management support to a franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
If either the Operating Principal or the General Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee shall promptly notify Franchisor and designate a replacement within thirty (30) days after the Operating Principal or the General Manager, as the case may be, ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).
Until such replacement is designated, Franchisee shall provide for interim management of the Franchised Business, who shall act in accordance with the terms of this Agreement.
Any failure to comply with the requirements of this Section shall be deemed a material event of default under this Agreement.
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements.
Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness may provide interim management support to a franchisee under specific circumstances. If the Operating Principal or General Manager is unable to continue in their role or no longer qualifies according to the Franchise Agreement, the franchisee must notify Fly Fitness and designate a qualified replacement within 30 days. Until a replacement is found, the franchisee is responsible for providing interim management that adheres to the agreement terms.
If the franchisee fails to designate a replacement, it is considered a material default under the agreement. In this case, Fly Fitness has the discretion to provide interim management support until a replacement Operating Principal or General Manager is properly trained and certified according to Fly Fitness's requirements.
If Fly Fitness provides interim management support, the franchisee is responsible for paying Fly Fitness's then-current interim management support fee, along with all associated costs for travel, lodging, meals, and other expenses. These charges are due upon written demand from Fly Fitness, or Fly Fitness may withdraw the amounts from the franchisee's designated bank account.