What intellectual property does Fly Fitness license from "Fly – A Fitness Revolution"?
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, Fly Fitness has a licensing agreement with "Fly – A Fitness Revolution." As part of this agreement, Fly Fitness is authorized to use specific intellectual property. This intellectual property includes trademarks, logos, and the Fly Fitness name itself.
This license is critical for Fly Fitness franchisees because it grants them the legal right to operate under the Fly Fitness brand and utilize its associated branding elements. Without this license, franchisees would not be able to legally represent themselves as part of the Fly Fitness system.
The licensing agreement, which began in 2022, requires Fly Fitness to make a one-time lump-sum payment of $125,000. Additionally, Fly Fitness must pay an annual fee of $20,000 for the duration of the 10-year contract. This financial commitment highlights the importance of the intellectual property to the Fly Fitness business model.