What is the amount of the initial franchise fee for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
se and Royalty Fee. As part of the consideration for the right to operate the Franchise granted herein, Franchisee shall pay to Franchisor the following fees:
- 6.1.1 Initial Franchise Fee. Franchisee acknowledges and agrees that the grant of this Franchise and the rights and obligations of the parties under this Agreement constitute the sole and only consideration for the initial franchise fee of Fifty Thousand Dollars ($50,000.00) (the "Initial Fee"). **The Initial Fee is fully earned at the time this F
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is the sole consideration for the grant of the franchise and the rights and obligations outlined in the franchise agreement. The FDD specifies that the initial fee is earned the moment the Franchise Agreement is signed.
Importantly, the initial franchise fee is non-refundable under any circumstances. This means that once the agreement is signed and the fee is paid, a franchisee cannot get this money back, even if they later decide not to proceed with opening the Fly Fitness franchise. This is a standard practice in franchising, as the fee compensates the franchisor for the initial costs of granting the franchise, including training, site selection assistance, and other startup support.
Prospective Fly Fitness franchisees should be fully aware of this non-refundable clause and carefully consider their decision before signing the Franchise Agreement and paying the initial fee. It is advisable to conduct thorough due diligence, including reviewing the FDD, speaking with existing franchisees, and consulting with legal and financial advisors, to ensure they are making an informed decision.