What happens if the Fly To Fit Principal Executive becomes incapacitated?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if the Principal Executive becomes incapacitated, the franchisee must promptly designate a new Principal Executive, subject to Fly To Fit's reasonable approval. The Principal Executive is the executive primarily responsible for the business and must have at least 10% ownership interest in the Fly To Fit franchise.
This requirement ensures that there is always a qualified individual overseeing the operations of the Fly To Fit business. While the Principal Executive does not have to serve as a day-to-day general manager, they must devote substantial time and attention to the business. This provision aims to maintain consistent management and decision-making within the franchise.
For a prospective Fly To Fit franchisee, this means that they need to have a plan in place for who would take over the responsibilities of the Principal Executive if they were to become incapacitated. This could involve identifying a successor within their organization or having a contingency plan for bringing in someone new who meets Fly To Fit's requirements. The successor would need to be approved by Fly To Fit.