What form of payment is required for the initial franchise fee for a Fly Fitness franchise?

According to Fly Fitness's 2024 Franchise Disclosure Document, the initial franchise fee is $50,000, payable as a lump sum in cash or available funds. This payment is due upon signing the Franchise Agreement. The payment is made directly to Fly Fitness. Prospective franchisees should note that this fee is generally non-refundable, as stated in Item 7. However, Item 5 mentions potential incentive programs that could offer a discount on this initial fee.

In addition to the initial franchise fee, the FDD outlines other initial investment costs. These include expenses for training, premises lease and utility deposits, rent, architectural plans, leasehold improvements, furniture, signage, licenses, computer systems, security, initial inventory, supplies, professional fees, fitness equipment, grand opening advertising, insurance, and operating expenses. These costs range from $331,558 to $617,705. The method of payment and to whom the payment is made varies depending on the expense, with payments typically made to suppliers, landlords, government agencies, or service providers as required.

Fly Fitness does not offer direct or indirect financing to franchisees for any of the items included in the initial investment. Franchisees are responsible for securing their own financing to cover these costs. It is important for potential franchisees to carefully review all the estimated costs and payment terms outlined in Item 7 of the FDD and to consult with financial advisors to ensure they have sufficient capital to launch and sustain their Fly Fitness franchise.