Are all fees and expenses described in Item 6 of the Fly Fitness FDD nonrefundable?

According to Fly Fitness's 2024 Franchise Disclosure Document, all fees and expenses outlined in Item 6 are generally nonrefundable and are uniformly applied to all franchisees. This means that once a franchisee pays any of the fees listed in this section, they typically cannot get that money back, regardless of the circumstances. This policy is consistently enforced across the Fly Fitness franchise system.

Item 6 covers a variety of ongoing fees that franchisees must pay to Fly Fitness or its affiliates. These include the Continuing Royalty Fee, which is 7% of weekly gross revenue, and a Brand Fund Contribution of 2% of weekly gross revenue. Franchisees are also required to spend a minimum of $500 per month on local advertising and marketing activities, with Fly Fitness reserving the right to increase this local advertising contribution by 10% annually.

Other potential expenses include costs associated with additional training programs or attendance at national business meetings or annual conventions. Franchisees are responsible for incidental expenses like travel, lodging, meals, and wages for themselves and their personnel in connection with these events. Additionally, if a franchisee wants to use equipment, supplies, or services from an unapproved supplier, Fly Fitness may charge the franchisee for the cost of inspecting the supplier's facilities and testing the proposed item or service. Given the nonrefundable nature of these fees, prospective franchisees should carefully consider these ongoing costs and ensure they fully understand the requirements and potential expenses before investing in a Fly Fitness franchise.