What is the development fee for a three-unit Fly Fitness commitment?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
n an additional unit.
We will charge you a development fee ("Development Fee") when you sign the Multi-Unit Development Agreement. The Development Fee is an amount equal to $50,000 for the first unit, plus 50% of the discounted initial franchise fee for each additional Fly Fitness outlet you commit to develop under the Multi-Unit Development Agreement. For a three-unit commitment, the Development Fee is $75,000 and is calculated as follows, $50,000 + ((50% x $25,000) x2) = $75,000. The remaining balance of $12,500 per outlet shall be payable as the developer's subsequent sites are approved and franchise agreements signed. The Development Fee is fully earned by us and due in lump sum when you sign the Development Agreement. The Development Fee is not refundable u
Source: Item 5 — INITIAL FEES (FDD page 8)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the development fee for a three-unit commitment is $75,000. This fee is calculated as follows: $50,000 for the first unit, plus 50% of the discounted initial franchise fee for each additional Fly Fitness outlet. The calculation is expressed as $50,000 + ((50% x $25,000) x2) = $75,000.
This development fee is due in a lump sum when the Multi-Unit Development Agreement is signed and is considered fully earned by Fly Fitness at that time. It is non-refundable under any circumstances. However, the remaining balance of $12,500 per outlet is payable as the developer's subsequent sites are approved and franchise agreements signed.
For a prospective franchisee, this means that committing to a three-unit development plan requires an initial investment of $75,000 upfront. This fee grants the franchisee the right to develop those units within a specified timeframe and territory. The initial franchise fee is discounted by 50% for each additional unit after the first. The remaining balance of $12,500 per outlet is payable as the developer's subsequent sites are approved and franchise agreements signed.