Is a Fly To Fit franchisee required to participate personally in the direct operation of their business?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
e. 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.
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, while franchisees are not required to serve as the day-to-day general manager, the person designated as the Principal Executive must devote substantial time and attention to the business. The Principal Executive is the individual with decision-making authority and must have at least a 10% ownership interest in the Fly To Fit franchise.
This requirement ensures that someone with a vested interest and authority is actively involved in the Fly To Fit business, even if they are not managing the daily operations. The FDD specifies 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. This indicates that either the Principal Executive or a trained general manager must be present at the business location to oversee operations.
This structure allows for flexibility in management while maintaining accountability. A franchisee can hire a general manager to handle day-to-day tasks, but the Principal Executive remains responsible for the overall performance and strategic direction of the Fly To Fit business. This arrangement is common in franchising, where the franchisee may have other business interests but must ensure their franchise receives adequate oversight.
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. This ensures the continued active management and oversight of the Fly To Fit business.