What is the method of payment for Premises lease and utility deposits for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $50,000 | $50,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Us |
| Your Training Expenses2 | $2,889 | $6,420 | As required for trans- portation, lodging & meals | As required by suppliers of transportation, lodging & meals. | Suppliers of transportation, lodging & meals. |
| Premises lease and utility deposits3 | $3,745 | $6,420 | As required by landlord | As required by landlord | Landlord |
| Three Month’s Rent4 | $11,235 | $25,680 | As required by utility providers | As required by utility providers | Utility providers |
| Architectural Plans5 | $10,700 | $21,400 | As required by supplier | Before opening as required by supplier | Supplier |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, premises lease and utility deposits are paid as required by the landlord and utility providers. The payments are made directly to the landlord and utility providers, respectively. The estimated initial investment for premises lease and utility deposits ranges from $3,745 to $6,420. These deposits are due as required by the landlord and utility providers.
For a prospective Fly Fitness franchisee, this means they should budget between $3,745 and $6,420 for these deposits. The actual amount will depend on the specific lease agreement and the requirements of the utility companies in the area where the franchise is located. It is important to carefully review the lease agreement and understand the terms of the utility services contracts to avoid any surprises.
It's also important to note that real estate costs can vary significantly, and in some markets, rents may be much higher than the estimates provided. Therefore, franchisees should conduct thorough market research and consult with real estate professionals to get an accurate assessment of rental rates and utility costs in their target location. This will help them develop a realistic budget for their initial investment and ongoing operating expenses.