Can Fly Fitness impose an Internal Systems Fee on franchisees?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 6.6 Internal Systems Fee.
Franchisor reserves the right to impose an internal systems fee upon Franchisee, in an amount that Franchisor reasonably determines, for the development, adoption and/or use of new or improved internal systems technology for the benefit of the System and Franchised Business, including but not limited to, assigned phone numbers and email addresses required for use in the Franchised Business, a franchise portal, benchmarking platform or other operations or communications systems ("Internal Systems Fee").
In Franchisor's sole discretion, Franchisor may (i) increase the amount of the internal systems fees or (ii) replace the technology with different technology, developed by Franchisor or a third-party, and Franchisee shall pay the then-
current fees for the replacement technology and for continuous access thereto. Franchisee shall pay the Internal Systems Fee in the manner and frequency as reasonably determined by Franchisor.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness reserves the right to impose an Internal Systems Fee on franchisees. This fee would be for the development, adoption, and use of new or improved internal systems technology that benefits the Fly Fitness system and the franchisee's business. These systems can include assigned phone numbers, email addresses, a franchise portal, benchmarking platform, or other operations and communications systems.
Fly Fitness has the sole discretion to determine the amount of the Internal Systems Fee and can increase it. They can also replace the technology with different technology developed by Fly Fitness or a third party, and the franchisee is responsible for paying the current fees for the replacement technology and continuous access to it. The franchisee must pay the Internal Systems Fee in the manner and frequency that Fly Fitness reasonably determines.
This means that as a Fly Fitness franchisee, you may be required to pay an additional fee for technology-related upgrades or changes implemented by the franchisor. The amount and frequency of this fee are not fixed and can change at Fly Fitness's discretion. It is important to budget for potential increases in this fee and to understand that you will be obligated to adopt and pay for new technologies or systems that Fly Fitness introduces.