What were the franchise costs for Fly Fitness in 2023?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
. There were no material transactions or events in the subsequent period requiring disclosure or recognition in the statements.
2. INTANGIBLE ASSETS
The Company entered into a licensing agreement with "Fly – A Fitness Revolution" during 2022 for the use of intellectual property, including trademarks, logos and the Fly Fitness name. This agreement included a $125,000 lump-sum p
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the company entered into a licensing agreement with "Fly – A Fitness Revolution" in 2022. This agreement required Fly Fitness to make a $125,000 lump-sum payment at the beginning of the agreement. Additionally, Fly Fitness must pay an annual fee of $20,000 for the life of the 10-year agreement.
This means that in 2023, Fly Fitness paid $20,000 as part of the licensing agreement. This cost is related to the use of intellectual property such as trademarks, logos, and the Fly Fitness name.
Prospective franchisees should note that these costs are specific to the franchisor, Fly Fitness, and not the franchisees themselves. Franchisees will have their own set of initial and ongoing costs, which are detailed elsewhere in the FDD. Understanding the franchisor's financial obligations can provide insight into the overall financial health and stability of the Fly Fitness franchise system.