What is the estimated total initial investment range for a Fly Fitness franchised business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Cost of first Fly Fitness Franchised Business | $281,858 | $567,705 | As incurred | See Above Chart | See Above Chart |
|---|---|---|---|---|---|
| TOTAL | $358,858 - $642,705 |
| 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 |
| Leasehold Improvements, Construction and/or Remodeling6 | $160,500 | $267,500 | As required by supplier, contractor, or landlord | Before opening, as required by supplier. | Suppliers, contractor and/or Landlord |
| Furniture, Fixtures and Equipment7 | $3,210 | $6,420 | As required by supplier | Before opening | Suppliers |
| Signage8 | $4,280 | $7,490 | As incurred | Before opening | Suppliers |
| Business Licenses and Permits9 | $214 | $535 | As required by government agencies | Before opening, as required by government agencies | Government Agencies |
| Computer | $1,605 | $2,140 | As required by | ||
| Systems10 | suppliers | ||||
| Security System | $0 | $2,140 | As required by suppliers | Before opening | Suppliers |
| Initial Inventory to Begin Operating11 | $7,490 | $16,050 | As required by suppliers | Before opening | Suppliers and our affiliate |
| Supplies12 | $2,140 | $3,210 | As required by suppliers | Before opening | Suppliers |
| Professional Fees13 | $2,675 | $5,350 | As required by providers | As incurred | Attorney, Accountant, Other Professional Service Providers |
| Fitness | $32,100 | $128,400 | As required by | ||
| Equipment14 | suppliers | ||||
| Grand Opening | $15,000 | $21,400 | As required by | ||
| Advertising 15 | supplier | supplier | |||
| Insurance16 | $2,675 | $4,350 | As required by insurer | Before opening | Insurer |
| Operating Expenses / Additional Funds – 3 months17 | $21,400 | $42,800 | As incurred | Payroll weekly, other purchases according to agreed-upon terms | Employees, utilities, suppliers, etc. |
| TOTAL | $331,558 - $617,705 |
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 total initial investment for a Fly Fitness franchise ranges from $358,858 to $642,705. This includes various expenses that a franchisee will incur before opening their Fly Fitness studio. These expenses cover a wide array of items, such as the initial franchise fee, training expenses, lease and utility deposits, rent, architectural plans, leasehold improvements, furniture, signage, licenses and permits, computer systems, security, initial inventory, supplies, professional fees, fitness equipment, grand opening advertising, insurance, and operating expenses.
Breaking down the investment, the initial franchise fee is a flat $50,000. Other significant costs include premises lease and utility deposits, which range from $3,745 to $6,420, and three months' rent, estimated between $11,235 and $25,680. Leasehold improvements and remodeling can be a substantial expense, ranging from $160,500 to $267,500. Fitness equipment costs between $32,100 and $128,400. Grand opening advertising will cost between $15,000 and $21,400. Additionally, the franchisee should budget for $21,400 to $42,800 for operating expenses and additional funds for the first three months of operation.
Prospective franchisees should note that these are estimates, and actual costs can vary depending on location, specific needs, and the ability to negotiate favorable terms with suppliers and landlords. Fly Fitness bases these estimates on the historical experience of its affiliates, but factors like local economic conditions, market competition, and the franchisee's management skills can influence the final investment amount. The FDD recommends that franchisees carefully review these figures with a business advisor before making any investment decisions. It is also important to consider that additional cash may be needed during the first three to six months of operation, or even longer, until the business becomes self-sustaining.
In summary, while the initial investment for a Fly Fitness franchise is considerable, understanding the breakdown of costs and planning for potential variations is crucial for prospective franchisees. Consulting with financial and legal professionals, as suggested by Fly Fitness, can provide further clarity and help in making an informed decision.