Considering the restrictions on suppliers in Item 8, how does Fly Fitness ensure that the franchisee's initial investment (Item 7) remains within the estimated range?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
We have identified various suppliers, distributors and manufacturers of equipment, fixtures, inventory, and services that your Franchised Business must use or provide which meets our standards and requirements. You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. We maintain written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. We will update these lists periodically and issue the updated lists to all franchisees.
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.
We and our affiliates currently do not receive any revenue, rebates, discounts, or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment; however, we may do so in the future, and any rebates or discounts we receive may be kept by us in our sole discretion. We and our affiliates have not received any revenue from franchisees required purchases or leases as of the date of this Disclosure Document.
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must purchase inventory, equipment, computer systems, and certain software from designated suppliers and contractors who meet Fly Fitness's standards. Fly Fitness maintains written lists of approved items and designated suppliers, updating these lists periodically for all franchisees.
To become an approved supplier, a potential supplier must submit samples of its product or service and any other required information for evaluation. Fly Fitness will then make a good-faith effort to notify the franchisee whether they approve or disapprove of the proposed item or supplier within 30 days after receiving all required information. If no approval is given within 30 days, the request is deemed unapproved. Fly Fitness reserves the right to revoke approval of any item or supplier that does not continue to meet their current standards.
Fly Fitness states that they and their affiliates do not currently receive any revenue, rebates, discounts, or other material consideration from any other suppliers based on the franchisees' required purchases of products, supplies, or equipment; however, they may do so in the future, and any rebates or discounts they receive may be kept by them in their sole discretion. Franchisees should be aware that Fly Fitness's criteria for approving items and suppliers are not available to franchisees. If a franchisee requests that Fly Fitness approve a proposed item or supplier, Fly Fitness may charge for their actual costs of product testing and evaluation.