Is the Continuing Royalty Fee uniformly imposed on all Fly Fitness franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
All fees and expenses described in this Item 6 are nonrefundable and are uniformly imposed. Except as otherwise indicated in the preceding chart, we impose all fees and expenses listed and you must pay them to us.
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 uniformly imposed on all franchisees. The FDD states that all fees and expenses outlined in Item 6 are uniformly imposed, which includes the Continuing Royalty Fee.
The Continuing Royalty Fee is 7% of the weekly Gross Revenue generated by the Fly Fitness franchised business. This revenue includes all income derived from the operation of the franchise, whether received in cash, services, or other forms. However, it excludes sales tax, documented refunds, and certain discounts.
Franchisees are required to pay the Continuing Royalty Fee weekly, specifically on Wednesday, for the Gross Revenue earned from the prior week (Monday through Sunday). Fly Fitness requires franchisees to authorize electronic fund transfers from their bank account to cover these fees. Failure to report revenues will result in Fly Fitness collecting 120% of the last Continuing Royalty Fee, with a balance settlement in the subsequent reporting period. Late payments or denied electronic fund transfers due to insufficient funds will incur interest and late fees.