Besides a confidentiality and non-compete agreement, are there any other restrictions Fly To Fit requires a franchisee to place on their manager?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3 General Manager and Key Employees. If requested by Fly To Fit Franchise, Franchisee will cause its general manager and other key employees to sign Fly To Fit Franchise's then-current form of confidentiality and non-compete agreement (unless prohibited by applicable law).
ARTICLE 14. DEFAULT AND TERMINATION
14.1 Termination by Franchisee. Franchisee may terminate this Agreement only if Fly To Fit Franchise violates a material provision of this Agreement and fails to cure or to make substantial
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if requested by Fly To Fit, a franchisee must ensure that their general manager and other key employees sign Fly To Fit's current confidentiality and non-compete agreement, unless prohibited by law. This requirement ensures that key personnel are bound by the same confidentiality and non-compete obligations as the franchisee, protecting Fly To Fit's confidential information and business interests.
Beyond the confidentiality and non-compete agreements, the FDD states that the Business must at all times be under the on-site supervision of the Principal Executive or a general manager who has completed Fly To Fit's training program. Fly To Fit may also set minimum qualifications for categories of employees employed by Franchisee. This ensures that the business is competently managed and that employees meet Fly To Fit's standards.
Fly To Fit may also require the Principal Executive and/or any other employees to complete further training programs at any time, in any format, and at any location determined by Fly To Fit. The franchisee is responsible for covering all travel, living, and other expenses associated with such training programs. This allows Fly To Fit to keep the franchisee's staff up-to-date with any changes to the system.
The franchisee is solely responsible for the terms and conditions of employment of all its personnel, including recruiting, hiring, training, scheduling, supervising, compensation, and termination. The franchisee is also solely responsible for all actions of its personnel. Fly To Fit and the franchisee are not joint employers, and no employee of the franchisee will be an agent or employee of Fly To Fit. Within seven days of Fly To Fit's request, the franchisee and each of its employees will sign an acknowledgment form stating that the franchisee alone (and not Fly To Fit) is the employee's sole employer. This clarifies the employment relationship and protects Fly To Fit from potential liabilities related to the franchisee's employees.