Does the Fly To Fit Multi-Unit Development Agreement contain provisions regarding non-competition covenants during the term of the franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Section in franchise or other agreement | Summary |
|---|---|---|
| q. Non-competition covenants during the term of the franchise | FA: § 13.2 MUDA: none | Neither you, any owner of the business, or any spouse of an owner may have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by, any competitor. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 35–39)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement (MUDA) does not contain specific non-competition covenants during the term of the franchise. However, the Franchise Agreement does include these covenants. This means that while you are operating a Fly To Fit franchise, neither you, any owner of the business, nor any spouse of an owner can have ownership interest in, lend money or provide financial assistance to, provide services to, or be employed by any competitor.
This restriction is common in franchising to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to benefit a competing business. It applies to the franchisee, any business owners, and their spouses, ensuring a broad scope of coverage.
It is important to note that while the MUDA itself doesn't specify these covenants, the actual Franchise Agreement that you sign to operate each Fly To Fit location will contain these restrictions. Therefore, if you are considering a Multi-Unit Development Agreement with Fly To Fit, you should carefully review the Franchise Agreement to understand the full scope of these non-competition obligations during the term of the franchise.