What must a Fly To Fit franchisee do to construct, open, and operate each Fly To Fit business under a MUDA?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
902-8760 | | Wisconsin | Division of Securities Department of Financial Institutions Post Office Box 1768 Madison, WI 53701 (608) 266-2801 | Securities and Franchise Registration Wisconsin Securities Commission 201 West Washington Avenue, Suite 300 Madison, WI 53703 |- (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Fly To Fit Franchise. The Initial Franchise Fee is non-refundable.
- 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.
| SUMMARY PAGE | |
|---|---|
| 1. Franchisee ________________________________ | |
| 2. Initial Franchise Fee $____________ | |
| 3. Development Area ________________________________ | |
| 4. Business Location ________________________________ | |
| 5. Territory ________________________________ | |
| 6. Opening Deadline ____________________ | |
| 7. Principal Executive ____________________ | |
| 8. Franchisee’s Address ________________________________________ |
- 4. Default and Termination. Fly To Fit Franchise may terminate this MUDA by giving notice to Franchisee, without opportunity to cure, if any of the following occur:
- (i) Franchisee fails to satisfy the development schedule;
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, a Multi-Unit Development Agreement (MUDA) does not automatically grant a franchisee the right to construct, open, or operate a Fly To Fit business. Instead, the franchisee must execute Fly To Fit's current standard franchise agreement for each additional location no later than three business days after securing the location through lease or acquisition.
This means that while the MUDA outlines the schedule and commitment for developing multiple Fly To Fit businesses, each location requires its own franchise agreement. This agreement is based on Fly To Fit's standard form at the time the location is secured. The franchisee must also demonstrate sufficient financial and organizational capacity to develop, open, operate, and manage each additional Fly To Fit business, as judged by Fly To Fit.
Furthermore, the franchisee must be in full compliance with all brand requirements at their existing Fly To Fit businesses and not be in default under any existing Franchise Agreement or other agreement with Fly To Fit. This ensures that the franchisee is a responsible operator before expanding further under the MUDA. Fly To Fit retains the right to terminate the MUDA if the franchisee fails to meet the development schedule or defaults on any franchise agreement.