What agreement is made between Fly To Fit Franchise, LLC and the Franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| | We have not been in business for three years or more, and therefore cannot include | |---|---| | all financial statements required by the Franchise Rule of the Federal Trade Commission. | | | Exhibit F contains our audited opening balance sheet dated 4/15/2024. Our fiscal year end is | | | December 31. | |
EXHIBIT C
MULTI-UNIT DEVELOPMENT AGREEMENT
| This Multi-Unit Development Agreement (this "MUDA") is made between Fly To Fit Franchise, | |
|---|---|
| LLC, a Delaware Limited Liability Company | |
| ("Fly To Fit Franchise") and, a | |
| ("Franchisee") on the Effective Date. |
Background Statement: On the same day as they execute this MUDA, Fly To Fit Franchise and Franchisee have entered into a Franchise Agreement for the franchise of a Fly To Fit business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). Fly To Fit Franchise and Franchisee desire that Franchisee develop multiple Fly To Fit businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Fly To Fit businesses on the following schedule:
| State | State Administrator | Agent for Service of Process (if different from State Administrator) |
|---|---|---|
| Minnesota | Minnesota Department of Commerce | Commissioner of Commerce |
| Securities-Franchise Registration | Minnesota Department of Commerce | |
| 85 7th Place East, Suite 280 | 85 7th Place East, Suite 280 | |
| St. Paul, MN 55101-2198 | St. Paul, MN 55101-2198 | |
| (651) 539-1500 | (651) 539-1500 | |
| New York | New York State Department of Law Investor Protection Bureau 28 Liberty St. 21st Floor New York, NY 10005 212-416-8236 | Secretary of State 99 Washington Avenue Albany, NY 12231 |
| North Dakota | North Dakota Securities Department 600 East Boulevard Ave., State Capital Fifth Floor, Dept. |
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, there are two main agreements that can be made between Fly To Fit Franchise, LLC and a franchisee: a Franchise Agreement and a Multi-Unit Development Agreement (MUDA). The MUDA is made between Fly To Fit Franchise, LLC and the franchisee on the effective date. On the same day as they execute the MUDA, Fly To Fit Franchise and the franchisee enter into a Franchise Agreement for the franchise of a Fly To Fit business. Fly To Fit Franchise and the franchisee both desire that the franchisee develop multiple Fly To Fit businesses.
The MUDA outlines the schedule for developing and opening multiple Fly To Fit businesses. Upon execution of the MUDA, the franchisee must pay the total Initial Franchise Fee to Fly To Fit Franchise, which is non-refundable. For the first store, the franchisee and Fly To Fit Franchise execute the Franchise Agreement simultaneously with the MUDA. For each additional Fly To Fit franchise, the franchisee must execute Fly To Fit Franchise's then-current standard form of franchise agreement no later than three business days after the franchisee leases or acquires a location.
The MUDA does not grant the franchisee the right to construct, open, or operate a Fly To Fit business. The franchisee can only construct, open, and operate each Fly To Fit business pursuant to a separate franchise agreement executed for each business. Fly To Fit can terminate the MUDA if the franchisee fails to satisfy the development schedule.