How can Fly Fitness collect the interim management support fee and expenses from a franchisee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor, in Franchisor's sole discretion, may provide interim management support and charge Franchisee the thencurrent interim management support fee until a replacement Operating Principal or General Manager is properly trained or certified in accordance with Franchisor's requirements.
Franchisee shall pay the interim management support fee, plus any and all costs of travel, lodging, meals, and other expenses reasonably incurred by Franchisor, upon written demand by Franchisor, or Franchisor may withdraw such amounts from Franchisee's designated bank account in accordance with Section 6.1.4.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, if a franchisee needs interim management support, Fly Fitness may provide it and charge a fee. This situation arises if the Operating Principal or General Manager is unable to continue in their role or no longer qualifies, and the franchisee has 30 days to find a replacement. Until a replacement is found, the franchisee must provide interim management according to the franchise agreement. Failure to comply is a material default.
Fly Fitness has the discretion to provide interim management support until a replacement is trained or certified. The franchisee is responsible for paying the then-current interim management support fee, along with travel, lodging, meals, and other related expenses incurred by Fly Fitness.
Fly Fitness can collect these fees and expenses either through a written demand for payment from the franchisee or by withdrawing the amounts directly from the franchisee's designated bank account, as outlined in Section 6.1.4 of the franchise agreement. This clause gives Fly Fitness a direct mechanism to ensure prompt payment for the support provided during the transition period.