Who is considered an 'Owner' of a Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ell products and services in the Territory through channels of distribution (including the internet) other than Fly To Fit outlets.
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee. If any information on Attachment 1 changes (which is not a Transfer), Franchisee shall notify Fly To Fit Franchise within 10 days.
- 2.4 Principal Executive. Franchisee agrees that the person designated as the "Principal Executive" on the Summary Page is the executive primarily responsible for the Business and has decision-making authority on behalf of Franchisee. The Principal Executive must have at least 10% ownership interest in Franchisee. The Principal Executive does not have to serve as a day-today general manager of the Business, but the Principal Executive must devote substantial time and attention to the Business. If the Principal Executive dies, becomes incapacitated, transfers his/her interest in Franchisee, or otherwise ceases to be the executive primarily responsible for the Business, Franchisee shall promptly designate a new Principal Executive, subject to Fly To Fit Franchise's reasonable approval.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Fly To Fit Franchise, in the form of Attachment 3.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the definition of an 'Owner' is implied within the context of franchise transfers and franchisee control. Specifically, Attachment 1 of the franchise agreement identifies each owner, officer, and director of the franchisee, detailing the nature and extent of each owner's interest. This suggests that anyone listed on Attachment 1 with an ownership interest in the franchisee entity is considered an 'Owner' by Fly To Fit.
Furthermore, the FDD highlights the role of a 'Principal Executive,' who must have at least a 10% ownership interest and be primarily responsible for the business's decisions. This indicates that individuals with significant ownership stakes and decision-making authority are considered key 'Owners.'
In the event of a transfer of ownership, Fly To Fit retains the right of first refusal, which applies to any owner engaging in a transfer, except in specific cases like transfers to a co-owner, spouse, sibling, or child. This underscores that Fly To Fit considers anyone with an ownership stake subject to transfer restrictions as an 'Owner.'