Is the Continuing Royalty Fee for Fly Fitness payable to the franchisor?
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 indeed payable to the franchisor. The FDD specifies that franchisees must pay Fly Fitness a Continuing Royalty Fee.
The Continuing Royalty Fee is 7% of the weekly Gross Revenue generated by the franchised business. This revenue includes all income derived from the operation of the Fly Fitness franchise, whether received in cash, services, or other forms of exchange. Gross Revenue does not include sales tax, documented refunds to customers, or certain discounts.
The Continuing Royalty Fee is due weekly, specifically on Wednesday, for the Gross Revenue of the prior week (Monday through Sunday). The FDD states this payment is 'Payable to us,' meaning directly to Fly Fitness. Franchisees are required to authorize electronic fund transfers from their bank account to Fly Fitness's bank account for these payments. Late payments or denied electronic fund transfers due to insufficient funds will incur interest and late fees.