What is the initial franchise fee for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ITEM 5: INITIAL FEES**
We will charge you an initial franchise fee ("Initial Franchise Fee") when you sign the Franchise Agreement. The Initial Franchise Fee is $50,000. This payment is fully earned by us and due in lump sum when you sign the Franchise Agreement. The Initial Franchise Fee is not refundable under any circumstance.
From time to time, we may offer special incentive programs as part of our franchise development activities. We reserve the right to offer, modify or withdraw any incentive program without notice to you. We currently offer a 20% discount from the Initial Franchise Fee for Fly Fitness franchisees in good standing who wish to open an additional unit.
We will charge you a development fee ("Development Fee") when you sign the Multi-Unit Development Agreement. The Development Fee is an amount equal to $50,000 for the first unit, plus 50% of the discounted initial franchise fee for each additional Fly Fitness outlet you commit to develop under the Multi-Unit Development Agreement. For a three-unit commitment, the Development Fee is $75,000 and is calculated as follows, $50,000 + ((50% x $25,000) x2) = $75,000. The remaining balance of $12,500 per outlet shall be payable as the developer's subsequent sites are approved and franchise agreements signed. The Development Fee is fully earned by us and due in lump sum when you sign the Development Agreement. The Development Fee is not refundable under any circumstance.
From time to time, we may offer special incentive programs as part of our franchise development activities. We reserve the right to offer, modify or withdraw any incentive program
Source: Item 5 — INITIAL FEES (FDD page 8)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the initial franchise fee is $50,000. This fee is due in a lump sum when the Franchise Agreement is signed. Fly Fitness considers this payment fully earned upon receipt, and it is non-refundable under any circumstances. This is a fairly standard initial franchise fee compared to other fitness franchises.
Fly Fitness does offer a discount on the initial franchise fee under certain conditions. Existing Fly Fitness franchisees in good standing who wish to open an additional unit may be eligible for a 20% discount on the initial franchise fee. This type of incentive is common in franchising to encourage growth within the existing franchisee base.
For franchisees pursuing a multi-unit development agreement, Fly Fitness charges a development fee. This fee covers the rights to develop multiple Fly Fitness locations. The development fee is $50,000 for the first unit, plus 50% of the discounted initial franchise fee for each additional Fly Fitness outlet the franchisee commits to develop. For example, a three-unit commitment would incur a $75,000 development fee, calculated as $50,000 + ((50% x $25,000) x2) = $75,000. The remaining balance of $12,500 per outlet is payable as the developer's subsequent sites are approved and franchise agreements signed. Like the initial franchise fee, the development fee is fully earned upon payment and is non-refundable.