Does Fly Fitness charge for product testing and evaluation of proposed suppliers?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We approve suppliers after careful review of the quality of the products they provide to us and our franchisees. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meets our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier
within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we may charge for our actual costs of product testing and evaluation.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if a franchisee requests approval of a proposed item or supplier, Fly Fitness may charge for the actual costs of product testing and evaluation. This means that if a franchisee wants to use a different supplier than those already approved by Fly Fitness, they may incur additional expenses for Fly Fitness to assess the new supplier's products or services.
Fly Fitness requires franchisees to purchase inventory, equipment, computer systems, and certain software from designated suppliers and contractors or in accordance with their specifications. Fly Fitness maintains written lists of approved items and designated suppliers, updating these lists periodically. If a franchisee wants Fly Fitness to consider another item or supplier, they must make a written request and have the supplier provide samples and other required information. Fly Fitness will make a good-faith effort to notify the franchisee of their decision within 30 days after receiving all required information. If no approval is given within 30 days, the request is deemed unapproved.
This policy is fairly common in franchising, as franchisors want to ensure consistent quality and standards across all locations. However, the potential charge for product testing and evaluation is an important consideration for prospective Fly Fitness franchisees. It highlights the importance of carefully evaluating approved suppliers and understanding the costs associated with seeking alternative options. Franchisees should inquire about the typical range of these testing and evaluation costs to better prepare for such expenses.