What is the purpose of the Multi-Unit Development Agreement between Fly To Fit Franchise and the Franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| | We have not been in business for three years or more, and therefore cannot include | |---|---| | all financial statements required by the Franchise Rule of the Federal Trade Commission. | | | Exhibit F contains our audited opening balance sheet dated 4/15/2024. Our fiscal year end is | | | December 31. | |
EXHIBIT C
MULTI-UNIT DEVELOPMENT AGREEMENT
| This Multi-Unit Development Agreement (this "MUDA") is made between Fly To Fit Franchise, | |
|---|---|
| LLC, a Delaware Limited Liability Company | |
| ("Fly To Fit Franchise") and, a | |
| ("Franchisee") on the Effective Date. |
Background Statement: On the same day as they execute this MUDA, Fly To Fit Franchise and Franchisee have entered into a Franchise Agreement for the franchise of a Fly To Fit business (the "Franchise Agreement"; capitalized terms used but not defined in this MUDA have the meanings given in the Franchise Agreement). Fly To Fit Franchise and Franchisee desire that Franchisee develop multiple Fly To Fit businesses.
1. Multi-Unit Commitment.
(a) Development Schedule; Fee. Franchisee shall develop and open Fly To Fit businesses on the following schedule:
| State | State Administrator | Agent for Service of Process (if different from State Administrator) |
|---|---|---|
| Minnesota | Minnesota Department of Commerce | Commissioner of Commerce |
| Securities-Franchise Registration | Minnesota Department of Commerce | |
| 85 7th Place East, Suite 280 | 85 7th Place East, Suite 280 | |
| St. Paul, MN 55101-2198 | St. Paul, MN 55101-2198 | |
| (651) 539-1500 | (651) 539-1500 | |
| New York | New York State Department of Law Investor Protection Bureau 28 Liberty St. 21st Floor New York, NY 10005 212-416-8236 | Secretary of State 99 Washington Avenue Albany, NY 12231 |
| North Dakota | North Dakota Securities Department 600 East Boulevard Ave., State Capital Fifth Floor, Dept. 414 Bismarck, ND 58505-0510 (701) 328-4712 | |
| Oregon | Department of Consumer & Business Services Division of Finance and Corporate Securities Labor and Industries Building Salem, Oregon 97310 (503) 378-4140 | |
| Rhode Island | Department of Business Regulation Securities Division 1511 Pontiac Avenue John O. |
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Multi-Unit Development Agreement (MUDA) outlines the terms under which a franchisee will develop multiple Fly To Fit businesses. The MUDA is made between Fly To Fit Franchise, LLC, and the franchisee on the effective date.
The document states that on the same day the MUDA is executed, Fly To Fit Franchise and the franchisee will also enter into a Franchise Agreement for a single Fly To Fit business. The purpose of the MUDA is to express the mutual desire for the franchisee to develop multiple Fly To Fit locations.
The agreement includes a development schedule that the franchisee must adhere to for opening new Fly To Fit businesses. The franchisee pays the total initial franchise fee to Fly To Fit Franchise upon execution of the MUDA, which is non-refundable. However, the MUDA itself does not grant the franchisee the right to open or operate a Fly To Fit business; this right is only granted through separate franchise agreements executed for each individual location. Fly To Fit Franchise can terminate the MUDA if the franchisee fails to meet the development schedule or if Fly To Fit Franchise has the right to terminate any existing franchise agreement with the franchisee due to default.