Does Fly Fitness make any representations about a franchisee's future financial performance?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Our affiliate outlets have earned this much. Your individual results may differ. There is no assurance that you'll earn as much.
Written substantiation for the financial performance representation will be made available to prospective franchisees upon reasonable request.
We do not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Jennifer Bruning Brown, 201 N. 13th Street, Lincoln, Nebraska 68508, 866-333-5359, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–42)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness does not make any representations about a franchisee's future financial performance. The FDD states that Fly Fitness also does not make any representations about the past financial performance of company-owned or franchised outlets. Furthermore, Fly Fitness does not authorize its employees or representatives to make any such representations either orally or in writing.
However, if a prospective franchisee is purchasing an existing Fly Fitness outlet, the franchisor may provide the actual records of that specific outlet. The FDD advises that if a prospective franchisee receives any other financial performance information or projections of future income, they should report it to Fly Fitness's management by contacting Jennifer Bruning Brown at 201 N. 13th Street, Lincoln, Nebraska 68508, 866-333-5359, the Federal Trade Commission, and the appropriate state regulatory agencies.
It is common for franchisors to provide some form of financial performance representation in their FDDs, but they are not legally obligated to do so. If Fly Fitness does provide Item 19 information, it includes a historic financial performance representation showing the combined Net Income, Expenses, Gross Profit, EBITDA, and EBITDAR for its two affiliate owned Fly Fitness outlets located in Lincoln, Nebraska. The first outlet opened in November of 2015 and the second in November of 2019. The FDD notes that the affiliates are a similar size as expected franchisee outlets and represents the sale of products and services that will be available for franchisees to sell.