Under the Fly Fitness franchise agreement, is a partnership created between the franchisee and franchisor?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 16.2.
Restrictions on Transfers by Franchisee.
Franchisee's rights and duties under this Agreement are personal to Franchisee as it is organized and with the Principals of the business as they exist on the date of execution of this Agreement, and Franchisor has made this Agreement with Franchisee in reliance on Franchisor's perceptions of the individual and collective character, skill, aptitude, attitude, business ability, and financial capacity of Franchisee.
Thus, no transfer, as hereafter defined, may be made without Franchisor's prior written approval.
Franchisor may void any transfer made without such approval.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, the franchise agreement does not create a partnership between the franchisee and franchisor. Item 16.2 states that the agreement is personal to the franchisee and relies on the character, skill, aptitude, business ability, and financial capacity of the franchisee. This indicates that Fly Fitness is granting the franchise based on their evaluation of the specific franchisee, not entering into a general partnership.
Furthermore, the agreement outlines restrictions on transfers by the franchisee, emphasizing that the franchisee cannot transfer the agreement or any rights without the franchisor's prior written approval. This restriction reinforces the franchisor's control over who operates a Fly Fitness franchise and further distinguishes the relationship from a partnership, where partners typically have more autonomy.
In essence, the Fly Fitness franchise agreement establishes a franchisor-franchisee relationship, not a partnership. The franchisor provides the brand, system, and support, while the franchisee operates the business according to the franchisor's standards. The agreement is personal to the franchisee, and the franchisor retains significant control over the franchise operation and its transfer.