What is the method of payment for Initial Inventory to Begin Operating for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Leasehold Improvements, Construction and/or Remodeling6 | $160,500 | $267,500 | As required by supplier, contractor, or landlord | Before opening, as required by supplier. | Suppliers, contractor and/or Landlord |
|---|---|---|---|---|---|
| Furniture, Fixtures and Equipment7 | $3,210 | $6,420 | As required by supplier | Before opening | Suppliers |
| Signage8 | $4,280 | $7,490 | As incurred | Before opening | Suppliers |
| Business Licenses and Permits9 | $214 | $535 | As required by government agencies | Before opening, as required by government agencies | Government Agencies |
| Computer | $1,605 | $2,140 | As required by | Before opening | Suppliers |
| Systems10 | suppliers | ||||
| Security System | $0 | $2,140 | As required by suppliers | Before opening | Suppliers |
| Initial Inventory to Begin Operating11 | $7,490 | $16,050 | As required by suppliers | Before opening | Suppliers and our affiliate |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the method of payment for the initial inventory to begin operating is "as required by suppliers". This payment is due before opening the franchise and is made to the suppliers and Fly Fitness's affiliate. The estimated cost for this initial inventory ranges from $7,490 to $16,050.
This means that prospective Fly Fitness franchisees should be prepared to pay their suppliers directly for the initial stock of retail or boutique inventory, including items like leggings, tops, accessories, and Fly Fitness merchandise. The exact timing and method of payment will depend on the specific terms set by these suppliers. Franchisees need to factor these costs and payment terms into their pre-opening financial planning.
It is important for potential Fly Fitness franchisees to communicate clearly with the designated suppliers to understand their payment policies, including accepted methods of payment (e.g., cash, credit card, or financing options), and to ensure timely procurement of the necessary inventory to avoid any delays in the opening of their franchise. Furthermore, the franchisee should confirm with Fly Fitness which suppliers they are required to use for the initial inventory.