Under the Fly Fitness franchise agreement, is the franchisee liable for the actions of their employees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.1.6.
Employ only qualified individuals who are trained in accordance with Franchisor's standards and who will at all times conduct themselves in a competent and courteous manner in accordance with this Agreement and the image and reputation of the System.
Within ninety (90) days of hiring, Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) shall obtain personal training certifications issued by a nationally recognized organization approved by Franchisor.
In addition to the requirements of Section 7.4 hereof, Franchisee, at Franchisee's sole expense, shall ensure that Franchisee's coaches (and Franchisee or Principal if providing fitness instruction) attend any required continuing education or training programs to maintain their personal training certifications.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are responsible for ensuring their employees conduct themselves appropriately and are adequately trained. Specifically, Fly Fitness franchisees must employ only qualified individuals trained according to Fly Fitness's standards. These employees must always act competently and courteously, upholding the System's image and reputation.
Furthermore, Fly Fitness requires that all coaches (and the franchisee or principal if they provide fitness instruction) obtain personal training certifications from a nationally recognized organization approved by Fly Fitness within 90 days of hiring. Franchisees must also ensure these coaches attend continuing education or training programs to maintain their certifications, bearing the associated expenses.
While the FDD excerpt does not explicitly state that the franchisee is liable for the actions of their employees, it does state that the franchisee agrees to hold the Fly Fitness indemnitees harmless and will reimburse them for costs and expenses incurred. This suggests that franchisees could be financially responsible for certain liabilities arising from their business operations. Prospective franchisees should seek clarification from Fly Fitness regarding the full scope of their liability for employee actions and ensure they have adequate insurance coverage to mitigate potential risks.