factual

Does Fly Fitness currently receive rebates from suppliers based on franchisee purchases?

Fly_Fitness Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)

What This Means (2024 FDD)

According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness and its affiliates do not currently receive any revenue, rebates, discounts, or other material consideration from any suppliers based on required franchisee purchases of products, supplies, or equipment. However, Fly Fitness retains the right to do so in the future, and any rebates or discounts they receive may be kept by them at their sole discretion. As of the date of the Disclosure Document, Fly Fitness and its affiliates have not received any revenue from franchisee required purchases or leases.

This means that currently, franchisees are not contributing to any revenue stream for Fly Fitness through supplier rebates. However, prospective franchisees should be aware that this could change in the future. Fly Fitness reserves the right to negotiate such arrangements and retain any resulting benefits.

It is common practice in franchising for franchisors to receive rebates or other forms of compensation from suppliers based on franchisee purchases. This can be a significant revenue stream for the franchisor. The fact that Fly Fitness does not currently receive such rebates may be seen as a positive by some franchisees, as it could indicate that Fly Fitness is not incentivized to push franchisees towards particular suppliers for financial gain. However, the possibility of this changing in the future should be considered.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.