When is the full amount of the Development Fee due to Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
t and all rights granted by Franchisor under this Agreement shall expire on the date on which Developer successfully and in a timely manner has complied with all of Developer's obligations hereunder and has completed the development obligations in accordance with the Development Schedule.
4. DEVELOPMENT AND FRANCHISE FEES.
- 4.1 Multi-Unit Development Fee. In consideration of the rights granted under this Agreement, Developer shall pay Franchisor a development fee ("Development Fee") equal to Fifty Thousand Dollars ($50,000) for your first Fly Fitness Franchised Business and fifty percent (50%) of the discounted initial franchise fee of Twenty Five Thousand Dollars ($25,000) for each Franchised Bu
Source: Item 23 — RECEIPT (FDD pages 45–182)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the development fee is due when the Multi-Unit Development Agreement is signed. The development fee is fully earned by Fly Fitness at the time the agreement is signed and is non-refundable under any circumstances.
For the first Fly Fitness Franchised Business, the development fee is $50,000. For each additional Franchised Business that the Developer agrees to develop, the fee is 50% of the initial franchise fee, which amounts to $25,000.
This means that a prospective Fly Fitness franchisee entering into a multi-unit development agreement must be prepared to pay the entire development fee upfront upon signing the agreement. This fee is non-refundable, regardless of whether the franchisee successfully opens all the planned locations. The development fee can be credited towards the initial franchise fee due under each Franchise Agreement as the franchisee opens each location, provided they comply with the Mandatory Development Schedule and are not in breach of the agreement.