Can Fly To Fit franchisees make sales from locations other than their premises?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
any direct or indirect ownership interest in the Business, or (iv) control of the Business.
ARTICLE 2. GRANT OF LICENSE
- 2.1 Grant. Fly To Fit Franchise grants to Franchisee the right to operate a Fly To Fit business solely at the Location. If no Location is stated on the Summary Page when this Agreement is signed, then the parties will determine the Location in accordance with Section 6.1. Franchisee shall develop, open and operate a Fly To Fit business at the Location for the entire term of this Agreement.
- 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;
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees are granted the right to operate a Fly To Fit business solely at the location specified in the franchise agreement. The agreement explicitly states that the franchisee must develop, open, and operate the Fly To Fit business at this designated location for the entire term of the agreement. This indicates that the primary business operations and sales activities are intended to be conducted from the physical premises of the franchised location.
Fly To Fit retains the right to sell and license others to sell products and services within the franchisee's territory through other channels of distribution, including the internet, that are not Fly To Fit outlets. This suggests that while franchisees are restricted to their specific location for their primary business, Fly To Fit itself may engage in sales activities through alternative channels within the same territory.
Furthermore, the franchise agreement stipulates that franchisees cannot engage in any business or other activity at the location other than the operation of the Fly To Fit business. This reinforces the restriction on conducting any additional, unrelated business activities from the franchised location. Franchisees are also prohibited from using the business's assets for any purpose other than the Fly To Fit business. These clauses collectively emphasize the focus on maintaining the integrity and exclusivity of the Fly To Fit business at the approved location.