When is the Continuing Royalty Fee due for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fee | 7% of weekly Gross Revenue | Weekly on Wednesday for Gross Revenue of the prior week (Monday through Sunday). | Payable to us. See footnote 1. |
Source: Item 6 — OTHER FEES (FDD pages 8–14)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Continuing Royalty Fee is due weekly. Specifically, it is due each Wednesday for the Gross Revenue generated during the prior week, which runs from Monday through Sunday. The royalty fee is a percentage of the Gross Revenue, set at 7%.
Fly Fitness requires franchisees to authorize electronic fund transfers from their bank account to cover these payments. This ensures timely remittance of the Continuing Royalty Fee. The FDD stipulates that interest and late fees will be applied to any late payments or denied electronic fund transfers due to insufficient funds.
Prospective Fly Fitness franchisees should note the importance of managing their cash flow to ensure they can meet this weekly royalty obligation. Failure to do so can result in additional charges and potential disruptions to their business operations. This weekly payment schedule is more frequent than some other franchises, which may collect royalties monthly.