What is Fly To Fit Franchise required to do regarding the Business before it can operate?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2. Form of Agreement. For Store #1, Franchisee and Fly To Fit Franchise have executed the Franchise Agreement simultaneously with this MUDA. For each additional Fly To Fit franchise, Franchisee shall execute Fly To Fit Franchise's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location. This MUDA does not give Franchisee the right to construct, open, or operate a Fly To Fit business, and Franchisee acknowledges that Franchisee may construct, open, and operate each Fly To Fit business only pursuant to a separate franchise agreement executed pursuant to this MUDA for each such Fly To Fit business.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, before a Fly To Fit business can operate, the franchisee and Fly To Fit must execute a Franchise Agreement. For the initial store, this agreement is executed simultaneously with the Multi-Unit Development Agreement (MUDA). For each additional Fly To Fit franchise, the franchisee must execute Fly To Fit's current standard franchise agreement within three business days of leasing or acquiring a location.
Furthermore, the MUDA itself does not grant the franchisee the right to construct, open, or operate a Fly To Fit business. The franchisee can only proceed with these activities under a separate franchise agreement specifically executed for each Fly To Fit business, as outlined in the MUDA. This means that for each location, a new franchise agreement is required before operation can commence.
This process ensures that Fly To Fit maintains control over the development and operation of each franchise unit, allowing them to enforce brand standards and operational requirements through individual franchise agreements. It also provides a framework for managing the expansion of multi-unit franchisees, ensuring they meet the necessary obligations for each new location. Prospective franchisees should carefully review the terms of both the MUDA and the standard franchise agreement to understand their obligations and the franchisor's expectations for each Fly To Fit business they plan to develop.