Does Fly To Fit grant franchisees an exclusive territory in the franchise agreement?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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Territory Protection
In your franchise agreement, we grant you an exclusive territory. In your territory, we will not establish either a company-owned or franchised outlet selling the same or similar goods or services under the same or similar trademarks or service marks as a Fly To Fit outlet. The continuation of your territorial protection does not depend on achieving a certain sales volume, market penetration, or other contingency. There are no circumstances that permit us to modify your territorial rights.
If you sign a MUDA, you do not receive an exclusive territory as an area developer. Therefore, with respect to a MUDA, we make the following disclosure: You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Restrictions on Us from Soliciting or Accepting Orders in Your Territory
There are no restrictions on us from soliciting or accepting orders from consumers inside your territory. We reserve the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within your territory using our principal trademarks or using trademarks different from the ones you will use under your franchise agreement. We do not pay any compensation to you for soliciting or accepting orders from inside your territory.
Source: Item 12 — TERRITORY (FDD pages 30–31)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the franchise agreement grants franchisees an exclusive territory. Within this territory, Fly To Fit will not establish or franchise another outlet that sells similar goods or services under the same trademarks. The continuation of this territorial protection is not dependent on factors like sales volume or market penetration, and Fly To Fit cannot modify these territorial rights.
However, this exclusive territory is not granted if a franchisee signs a Multi-Unit Development Agreement (MUDA). In the case of a MUDA, franchisees will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels and competitive brands controlled by Fly To Fit.
Fly To Fit retains the right to use other channels of distribution, such as the internet, catalog sales, telemarketing, or other direct marketing sales, to make sales within the franchisee's territory using their principal trademarks or using trademarks different from the ones the franchisee will use under their franchise agreement. Fly To Fit does not pay any compensation to the franchisee for soliciting or accepting orders from inside their territory. Franchisees are not restricted from soliciting or accepting orders from consumers outside of their territory, but all marketing and advertising is subject to Fly To Fit's approval.