Does the Principal Executive of a Fly To Fit franchise have to serve as a day-to-day general manager?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
e. 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 Fly To Fit's 2024 Franchise Disclosure Document, the Principal Executive does not have to serve as a day-to-day general manager. However, the Principal Executive must devote substantial time and attention to the Fly To Fit business. The Principal Executive is defined as the person designated on the Summary Page who is primarily responsible for the business and has decision-making authority on behalf of the franchisee.
Furthermore, the Fly To Fit franchise agreement stipulates that the business must at all times be under the on-site supervision of either the Principal Executive or a general manager who has completed Fly To Fit's training program. This implies that if the Principal Executive does not serve as the day-to-day general manager, the franchisee must employ a general manager who has completed the required training.
This arrangement provides flexibility for Fly To Fit franchisees. A franchisee can choose to manage the business directly as the Principal Executive or delegate day-to-day operations to a trained general manager while still maintaining oversight as the Principal Executive. However, Fly To Fit retains the right to require the Principal Executive and/or any other employees to complete further training programs at any time.