Does the Fly To Fit agreement define 'Competitor'?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 22: CONTRACTS]
ARTICLE 1. DEFINITIONS
- "Action" means any action, suit, proceeding, claim, demand, governmental investigation, governmental inquiry, judgment or appeal thereof, whether formal or informal.
- "Approved Vendor" means a supplier, vendor, or distributor of Inputs which has been approved by Fly To Fit Franchise.
- "Business" means the Fly To Fit business owned by Franchisee and operated under this Agreement.
- "Competitor" means any business which offers products and/or services the same or similar to the franchise brand.
- "Confidential Information" means all non-public information of or about the System, Fly To Fit Franchise, and any Fly To Fit business, including all methods for developing and operating the Business, and all non-public plans, data, financial information, processes, vendor pricing, supply systems, marketing systems, formulas, techniques, designs, layouts, operating procedures, customer data, information and know-how.
- "Gross Sales" means the total dollar amount of all sales generated through the Business for a given period, including, but not limited to, payment for any services or products sold by Franchisee, whether for cash or credit. Gross Sales does not include (i) bona fide refunds to customers, (ii) sales taxes collected by Franchisee, (iii) sales of used equipment not in the ordinary course of
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
Yes, according to Fly To Fit's 2024 Franchise Disclosure Document, the agreement does define what constitutes a 'Competitor'. The definition is found within Article 1, which covers various definitions used throughout the franchise agreement. For a Fly To Fit franchisee, this definition is important because it clarifies the scope of activities that are considered competitive and could be restricted under the non-compete clauses of the agreement.
The Fly To Fit franchise agreement specifies that a 'Competitor' is defined as any business that offers products and/or services that are the same or similar to the franchise brand. This definition is fairly broad, meaning that franchisees need to be careful about any related business ventures they or their immediate family members might be involved in, both during the term of the franchise agreement and for a period after the agreement expires or is terminated.
Understanding this definition is crucial for franchisees to avoid violating the non-compete terms, which could lead to legal repercussions or the extension of the non-compete period. It is also important for potential franchisees to evaluate whether this definition is reasonable and how it might impact their future business opportunities. Franchisees should seek clarification from Fly To Fit regarding any specific business activities they are considering to ensure they do not run afoul of the non-compete agreement.