Besides membership fees, what are other potential revenue streams for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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Revenue
The principal source of revenue for a FLY FITNESS studio is membership fees. Monthly and annual fees are usually paid through electronic transfer of funds (EFT). Annual fees are billed to a member once per year, the time of which is dependent on their join date and membership type, as detailed in their membership agreement. A fitness facility will also earn additional revenue through prepaid class packages, prepaid Pilates sessions, beverage sales, boutique sales and cancellation fees.
Breakdown of revenue sources in 2023 from listed corporate outlets in the above chart includes:
- Memberships (contracts) 64%
- Credits (packages/intros) 23.7%
- Boutique 8%
- Penalty fees 2.4%
- Miscellaneous (Beverage, Shoe rentals, etc.) 1.8%
Unlimited monthly memberships make up a substantial portion of our existing corporate outlets. These contracts over recurring monthly rev
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–42)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, while the primary source of revenue for a Fly Fitness studio is membership fees, franchisees can also generate income from several other sources. These include prepaid class packages, prepaid Pilates sessions, beverage sales, boutique sales, and cancellation fees. This diversification allows franchisees to tap into different customer needs and preferences, potentially increasing overall revenue.
The 2023 revenue breakdown from corporate outlets shows that memberships accounted for 64% of revenue, while credits (packages/intros) contributed 23.7%. Boutique sales made up 8% of revenue, penalty fees accounted for 2.4%, and miscellaneous items like beverage and shoe rentals comprised 1.8%. This breakdown highlights the relative importance of each revenue stream, with memberships and class packages being the most significant after the main membership fees.
Unlimited monthly memberships, priced at $159 per month, form a substantial portion of the recurring monthly revenue for existing corporate outlets. These memberships require a 30-day cancellation notice, unless state or local laws mandate otherwise. This recurring revenue model provides a stable income base for Fly Fitness studios, while the additional revenue streams offer opportunities for further growth and profitability. However, the FDD also notes that franchisee results may differ and there is no guarantee of earning as much as the corporate outlets.