Can Fly To Fit require a remodel of the business as a condition of renewal?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
- 3.2 Successor Agreement. When the term of this Agreement expires, Franchisee may enter into a successor agreement for up to 2 additional periods of 5 years each, subject to the following conditions prior to each expiration:
- (i) Franchisee notifies Fly To Fit Franchise of the election to renew between 90 and 180 days prior to the end of the term;
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit can require franchisees to complete renovations and changes to the business, including a remodel, as a condition of renewal. Specifically, to enter into a successor agreement, the franchisee must make or agree to make renovations and changes to the business as Fly To Fit requires to conform to the then-current System Standards. This includes a remodel, if applicable.
This requirement means that a Fly To Fit franchisee may need to invest additional capital to update their location to meet the current brand standards at the time of renewal. The cost of such a remodel is not specified in this document, but it is a factor that prospective franchisees should consider when evaluating the long-term investment required for a Fly To Fit franchise.
It is typical in franchising for franchisors to require periodic updates or remodels to maintain brand consistency and appeal. However, the frequency and cost of these remodels can vary significantly between franchise systems. Therefore, a prospective Fly To Fit franchisee should inquire about the expected scope and cost of required remodels, as well as the availability of financing options, during their due diligence process.