What is the Internal Systems Fee for Fly Fitness used for?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
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, the Internal Systems Fee is used for the development, adoption, and/or use of new or improved internal systems technology that benefits both the Fly Fitness system and the franchised business. This includes, but is 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.
Fly Fitness retains the right to determine the amount of this fee and can increase it or replace the technology with different technology, whether developed by Fly Fitness or a third party. The franchisee is obligated to pay the fees associated with any replacement technology and for continuous access to it. The method and frequency of these payments will be determined by Fly Fitness.
This means that as a Fly Fitness franchisee, you may be required to pay an ongoing fee for technology-related services and systems. The amount of this fee can change, and you may be required to adopt new technologies and pay for them as they are introduced by Fly Fitness. It is important for prospective franchisees to factor in the potential for these technology costs when evaluating the overall investment and operating expenses of a Fly Fitness franchise.