What is the role of the 'Principal Executive' for a Fly To Fit franchise?
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.
- 2.5 Guaranty. If Franchisee is an entity, then Franchisee shall have each Owner sign a personal guaranty of Franchisee's obligations to Fly To Fit Franchise, in the form of Attachment 3.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Principal Executive is the person primarily responsible for the Fly To Fit business and possesses decision-making authority on behalf of the franchisee. This individual must be designated on the Summary Page of the franchise agreement and is required to have at least a 10% ownership interest in the franchise. While the Principal Executive is not required to be the day-to-day general manager, they must devote substantial time and attention to the business.
In terms of operational oversight, the Fly To Fit business must be under the on-site supervision of either the Principal Executive or a general manager who has completed Fly To Fit's training program. The Principal Executive is also required to complete Fly To Fit's training program for new franchisees to Fly To Fit's satisfaction at least four weeks before opening the business. Furthermore, Fly To Fit may require the Principal Executive to complete additional training programs at any time, in any format, and at any location determined by Fly To Fit.
If the Principal Executive dies, becomes incapacitated, transfers their interest in the franchise, or otherwise ceases to be the executive primarily responsible for the business, the franchisee must promptly designate a new Principal Executive, subject to Fly To Fit's reasonable approval. This ensures continuity in the leadership and management of the Fly To Fit franchise. If a training program requires travel by the Principal Executive, the franchisee is responsible for covering all travel, living, and other related expenses.