What information does Attachment 1 to the Fly To Fit franchise agreement contain?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 2.3 Franchisee Control. Franchisee represents that Attachment 1 (i) identifies each owner, officer and director of Franchisee, and (ii) describes the nature and extent of each owner's interest in Franchisee. 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 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to the 2024 Fly To Fit Franchise Disclosure Document, Attachment 1 to the franchise agreement identifies each owner, officer, and director of the franchisee. It also describes the nature and extent of each owner's interest in the Fly To Fit franchise.
This attachment is important because it provides Fly To Fit with transparency regarding the ownership and management structure of the franchisee. If there are any changes to the information provided in Attachment 1, such as a change in ownership or the roles of officers and directors, the franchisee is required to notify Fly To Fit within 10 days. This ensures that Fly To Fit always has current information about who is involved in the operation of the franchise.
Furthermore, the franchise agreement designates a "Principal Executive" who is primarily responsible for the Fly To Fit business and has decision-making authority. This Principal Executive must have at least a 10% ownership interest in the franchisee. While the Principal Executive does not have to be the day-to-day general manager, they must devote substantial time and attention to the business. If the Principal Executive changes, Fly To Fit's approval is required for the new designation.