factual

Does Fly To Fit Franchise have the right to establish Fly To Fit businesses outside the Territory?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

  • 2.2 Protected Territory. Fly To Fit Franchise shall not establish, nor license the establishment of, another business within the Territory selling the same or similar goods or services under the same or similar trademarks or service marks as a Fly To Fit business. Fly To Fit Franchise retains the right to:
    • (i) establish and license others to establish and operate Fly To Fit businesses outside the Territory, notwithstanding their proximity to the Territory or their impact on the Business;
    • (ii) operate and license others to operate businesses anywhere that do not operate under the Fly To Fit brand name; and
    • (iii) sell and license othersto sell products and services in the Territory through channels of distribution (including the internet) other than Fly To Fit outlets.

Source: Item 22 — CONTRACTS (FDD page 44)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit retains the right to establish and license others to establish and operate Fly To Fit businesses outside the franchisee's territory. This is explicitly stated in the franchise agreement, regardless of the proximity to the franchisee's territory or the potential impact on their business. Fly To Fit also retains the right to operate and license businesses anywhere that do not operate under the Fly To Fit brand name. Additionally, Fly To Fit can sell and license others to sell products and services within the franchisee's territory through different channels of distribution, including the internet, as long as it's not through Fly To Fit outlets.

This provision means that while Fly To Fit franchisees are granted a protected territory, this protection is limited. Fly To Fit can expand its brand's presence outside the franchisee's territory without restriction. They can also engage in business activities within the franchisee's territory through alternative channels, which could potentially compete with the franchisee's business.

For a prospective franchisee, this highlights the importance of carefully evaluating the defined territory and understanding the potential for competition from both other franchisees and from Fly To Fit itself through alternative distribution channels. It is also important to note that Fly To Fit's advice regarding or acceptance of a site is not a representation or warranty that the Business will be successful, and Fly To Fit has no liability to Franchisee with respect to the location of the Business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.