What is the estimated low and high cost for three months' rent for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $50,000 | $50,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Us |
| Your Training Expenses2 | $2,889 | $6,420 | As required for trans- portation, lodging & meals | As required by suppliers of transportation, lodging & meals. | Suppliers of transportation, lodging & meals. |
| Premises lease and utility deposits3 | $3,745 | $6,420 | As required by landlord | As required by landlord | Landlord |
| Three Month’s Rent4 | $11,235 | $25,680 | As required by utility providers | As required by utility providers | Utility providers |
| Architectural Plans5 | $10,700 | $21,400 | As required by supplier | Before opening as required by supplier | Supplier |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the estimated cost for three months' rent ranges from $11,235 to $25,680. This cost is an estimate for a location that is between 3,000 and 3,500 square feet.
Real estate costs can vary significantly depending on the location of the Fly Fitness franchise. The FDD notes that rental rates could be substantially higher in certain markets, potentially three times the estimated amount. This means that franchisees need to carefully research and consider local market conditions when budgeting for their initial investment.
It's important to note that this estimate covers only the base rent for the specified period. Additional costs such as real estate broker fees, prepayments for first and/or last month's rent, common area maintenance (CAM) fees, real estate taxes, and insurance costs are not included in this estimate. These additional expenses can further increase the overall cost of securing a location for the Fly Fitness business.
Prospective franchisees should conduct thorough due diligence on local rental rates and associated costs to develop a realistic budget. Consulting with a real estate professional experienced in commercial leasing can provide valuable insights into the specific market conditions and potential expenses in their desired location.