What day of the week is the Continuing Royalty Fee due for Fly Fitness?
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 on Wednesday. This fee is calculated as 7% of the Gross Revenue generated by the Franchised Business during the prior week, which runs from Monday through Sunday.
This means that Fly Fitness franchisees must calculate their Gross Revenue for the period of Monday to Sunday and remit 7% of that amount to the franchisor every Wednesday. The Gross Revenue includes all income derived from the operation of the franchised business, whether received in cash, services, or credit. However, it excludes sales tax, documented refunds to customers, and certain discounts.
It is important for prospective Fly Fitness franchisees to understand this weekly payment schedule and ensure they have systems in place to accurately track and report Gross Revenue. Franchisees are required to authorize electronic fund transfers from their bank account to Fly Fitness's bank account for royalty payments. Failure to make timely payments or denied electronic fund transfer requests due to insufficient funds will result in interest and late fees.