When are Brand Fund Contribution payments due for Fly Fitness franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 3You must pay directly to our Brand Fund a Brand Fund Contribution of two percent (2%) of weekly Gross Revenue.
Payments are due at the same time and in the same manner as the Royalty Fee.
You may be required to set up authorization at your bank to allow the Brand Fund to electronically transfer funds from your bank account to the Brand Fund's bank account.
Interest and late fees will apply to any late payments or electronic funds transfer requests denied due to insufficient funds.
Source: Item 6 — OTHER FEES (FDD pages 8–14)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must pay a Brand Fund Contribution, which is 2% of weekly Gross Revenue. These payments are due at the same time and in the same manner as the Royalty Fee. The Royalty Fee is 7% of weekly Gross Revenue.
The FDD specifies that the Continuing Royalty Fee is due weekly on Wednesday for the Gross Revenue of the prior week, which runs from Monday through Sunday. Therefore, the Brand Fund Contribution is also due weekly on Wednesday for the previous Monday-to-Sunday period.
Fly Fitness may require franchisees to set up authorization at their bank to allow for electronic transfers to the Brand Fund. Interest and late fees will apply to any late payments or denied electronic fund transfer requests due to insufficient funds, so franchisees must ensure timely payments to avoid penalties.