What interest rate does Fly Fitness charge on overdue amounts?

According to Fly Fitness's 2024 Franchise Disclosure Document, any amounts due from a franchisee to Fly Fitness will bear interest from the date the payment was due until it is paid. The interest rate is 18% per annum, or the highest rate permitted by law, whichever is lower.

In addition to interest on overdue amounts, Fly Fitness also charges a late fee of $75 if the Royalty Fee, Brand Fund Contribution, or any Gross Revenue Reports are not received as required. This late fee is not considered a penalty but is related to the costs Fly Fitness incurs from the delay. This is in addition to any other remedies Fly Fitness has available under the Franchise Agreement.

Prospective franchisees should be aware of these financial penalties for late payments and ensure they understand the payment schedule and reporting requirements to avoid incurring these charges. It is also important to note that these fees and interest charges can accumulate quickly, potentially impacting the profitability of the franchise.