Does Fly To Fit restrict a franchisee's access to customers?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
ted thereto. Franchisee shall give Fly To Fit Franchise unlimited access to Franchisee's point of sale system and other software systems used in the Business, by any means designated by Fly To Fit Franchise.
- 7.8 Customer Complaints. Franchisee shall use its best efforts to promptly resolve any customer complaints. Fly To Fit Franchise may take any action it deems appropriate to resolve a customer complaint regarding the Business, and Fly To Fit Franchise may require Franchisee to reimburse Fly To Fit Franchise for any expenses.
- 7.9 Evaluation and Compliance Programs. Franchisee shall participate at its own expense in programs required from time to time by Fly To Fit Franchise for obtaining customer evaluations, reviewing Franchisee's compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey programs, and mystery shopping. Fly To Fit Franchise shall share with Franchisee the results of these programs, as they pertain to the Business. Franchisee must meet or exceed any minimum score requirements set by Fly To Fit Franchise for such programs. Fly To Fit Franchise may set minimum scores that Franchisee must receive from the public on internet review sites (such as Yelp or Google).
- 7.10 Payment Systems. Franchisee shall accept payment from customers in any form or manner designated by Fly To Fit Franchise (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems). Franchisee shall purchase or lease all equipment and enter into all business relationships necessary to accept payments as required by Fly To Fit Franchise. Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 35)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees face several restrictions regarding customer interaction and data. Fly To Fit retains ownership of all customer data generated by the franchisee's business. While Fly To Fit licenses this data back to the franchisee for use in their business operations during the term of the agreement, the franchisor ultimately controls this information. This means that upon termination of the franchise agreement, the franchisee loses access to this customer data.
Fly To Fit mandates participation in customer evaluation and compliance programs, such as customer feedback systems, surveys, and mystery shopping. Franchisees must also meet or exceed minimum score requirements set by Fly To Fit for these programs and potentially for public internet review sites like Yelp or Google. Fly To Fit reserves the right to take action on customer complaints and may require the franchisee to reimburse Fly To Fit for any expenses incurred in resolving these complaints.
Furthermore, Fly To Fit dictates the forms of payment franchisees must accept, which may include cash, specific credit/debit cards, gift cards, electronic fund transfer systems, and mobile payment systems. Franchisees are also obligated to use their best efforts to promptly resolve customer complaints, but Fly To Fit retains the authority to intervene and take any action it deems appropriate to resolve such complaints. These stipulations collectively grant Fly To Fit significant control over customer interactions and data management, potentially limiting the franchisee's direct relationship with their customer base.