What is the role of Fly To Fit Franchise in the Multi-Unit Development Agreement?
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. Pastore Complex–69-1 Cranston, RI 02920-4407 (401) 462-9527 | ||
| South Dakota | Division of Insurance Securities Regulation 124 South Euclid Suite 104 Pierre, SD 57501-3185 (605) 773-3563 | ||
| Virginia | State Corporation Commission 1300 East Main Street 9th Floor Richmond, VA 23219 (804) 371-9051 | Clerk of the State Corporation Commission 1300 East Main Street, 1st Floor Richmond, VA 23219 | |
| Washington | Department of Financial Institutions | Department of Financial Institutions | |
| Securities Division | Securities Division | ||
| P.O. Box 9033 | 150 Israel Rd SW | ||
| Olympia, WA 98507 | Tumwater, WA 98501 | ||
| (360) 902-8760 | (360) 902-8760 | ||
| Wisconsin | Division of Securities Department of Financial Institutions Post Office Box 1768 Madison, WI 53701 (608) 266-2801 | Securities and Franchise Registration Wisconsin Securities Commission 201 West Washington Avenue, Suite 300 Madison, WI 53703 | - (b) Payment**.** Upon execution of this MUDA, Franchisee shall pay the total Initial Franchise Fee to Fly To Fit Franchise. The Initial Franchise Fee is non-refundable. |
- 2. Form of Agreement. For Store #1, Franchisee and Fly To Fit Franchise have executed the Franchise Agreement simultaneously with this MUDA. For each additional Fly To Fit franchise, Franchisee shall execute Fly To Fit Franchise's then-current standard form of franchise agreement no later than three business days after Franchisee leases or acquires a location.
Source: Item 23 — RECEIPTS (FDD pages 44–134)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Franchise, LLC, a Delaware Limited Liability Company, enters into a Multi-Unit Development Agreement (MUDA) with the franchisee. The MUDA outlines the terms under which the franchisee will develop multiple Fly To Fit businesses. Fly To Fit Franchise and the franchisee both desire that the franchisee develop multiple Fly To Fit businesses.
Fly To Fit Franchise receives the total Initial Franchise Fee upon execution of the MUDA, which is non-refundable. Fly To Fit Franchise's then-current standard form of franchise agreement must be executed by the franchisee no later than three business days after the franchisee leases or acquires a location for each additional Fly To Fit franchise.
Fly To Fit Franchise may terminate the MUDA if the franchisee fails to satisfy the development schedule or if Fly To Fit Franchise has the right to terminate any franchise agreement with the franchisee due to the franchisee's default. However, the franchisee's commitment is treated as an option, limiting liability for lost future revenues if the MUDA is terminated due to the franchisee's default. Fly To Fit Franchise also assesses the franchisee's financial and organizational capacity to develop and operate additional Fly To Fit businesses and ensures compliance with brand requirements. The franchisee cannot transfer the MUDA without Fly To Fit Franchise's prior written consent, and any unauthorized transfer is void.
Several state-specific addenda to the Multi-Unit Development Agreement clarify the relationship and protect the franchisee's rights under local laws, including those in Rhode Island, Washington, New York, North Dakota, Illinois, Maryland, and Minnesota. These addenda address issues such as jurisdiction, waivers, governing law, and limitations of claims, ensuring compliance with state franchise laws.