Must a Fly Fitness franchisee purchase fixtures according to Fly Fitness's specifications?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
URCES OF PRODUCTS AND SERVICES**
We have identified various suppliers, distributors and manufacturers of equipment, fixtures, inventory, and services that your Franchised Business must use or provide which meets our standards and requirements. You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications. We maintain written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. We will update these lists periodically and issue the updated lists to all franchisees.
We approve suppliers after careful review of the quality of the products they provide to us and our franchisees. If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require. If the item and/or supplier meets our specifications, as we determine in our sole discretion, we will approve it as an additional item or supplier. We will make a good-faith effort to notify you whether we approve or disapprove of the proposed item or supplier
within 30 days after we receive all required information to evaluate the product or service. If we do not approve any request within 30 days, it is deemed unapproved. We reserve the right to revoke approval of any item or supplier that does not continue to meet our then-current standards. Our criteria for approving items and suppliers are not available to you. If you request that we approve a proposed item or supplier, we may charge for our actual costs of product testing and evaluation.
We and our affiliates currently do not receive any revenue, rebates, discounts, or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment; however, we may do so in the future, and any rebates or discounts we receive may be kept by us in our sole discretion.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–20)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees must purchase fixtures that meet Fly Fitness's standards and requirements. Fly Fitness identifies various suppliers, distributors, and manufacturers of equipment, fixtures, inventory, and services that the Franchised Business must use or provide. Franchisees must purchase all inventory, equipment, computer systems, and certain software from Fly Fitness's designated suppliers and contractors or in accordance with their specifications.
Fly Fitness maintains written lists of approved items of equipment, fixtures, inventory, and supplies (by brand name and/or by standards and specifications) and a list of designated suppliers and contractors for those items. These lists are updated periodically and issued to all franchisees. If a franchisee would like Fly Fitness to consider another item or supplier, they must make such request in writing and have the supplier give Fly Fitness samples of its product or service and such other information that Fly Fitness may require.
Fly Fitness will make a good-faith effort to notify the franchisee whether they approve or disapprove of the proposed item or supplier within 30 days after they receive all required information to evaluate the product or service. If Fly Fitness does not approve any request within 30 days, it is deemed unapproved. Fly Fitness reserves the right to revoke approval of any item or supplier that does not continue to meet their then-current standards.
The purchase or lease of products, supplies, and services from approved suppliers (or those which meet Fly Fitness's specifications) will represent approximately 41%-47% of the franchisee's costs to establish their Franchised Business and approximately 9% of their costs for ongoing operation.