What is the role of the 'Principal Executive' in 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.
- 2.6 No Conflict. Franchisee represents to Fly To Fit Franchise that Franchisee and each of its Owners (i) are not violating any agreement (including any confidentiality or non-competition covenant) by entering into or performing under this Agreement, (ii) are not a direct or indirect owner of any Competitor, and (iii) are not listed or "blocked" in connection with, and are not in violation under, any anti-terrorism law, regulation, or executive order.
ARTICLE 3. TERM
- 3.1 Term. This Agreement commences on the Effective Date and continues for 10 years.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Principal Executive plays a crucial role in the operation of a Fly To Fit franchise. The Principal Executive is the person designated on the Summary Page of the Franchise Agreement who is primarily responsible for the business and possesses decision-making authority on behalf of the franchisee. This individual must maintain 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.
The Principal Executive, or a general manager who has completed Fly To Fit's training program, must provide on-site supervision of the business at all times. Furthermore, the Principal Executive is required to complete Fly To Fit's training program for new franchisees to the franchisor's satisfaction at least four weeks before the business opens. Fly To Fit also may require the Principal Executive to complete further training programs at any time after opening.
If the designated Principal Executive dies, becomes incapacitated, transfers their interest in the franchise, or otherwise ceases to be the executive primarily responsible, the franchisee must promptly designate a new Principal Executive, subject to Fly To Fit's reasonable approval. This ensures continuity in leadership and adherence to Fly To Fit's standards. The Principal Executive's role is integral to maintaining the standards and operational effectiveness of the Fly To Fit franchise.