Does Fly Fitness offer any incentive programs related to the initial franchise fee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
der any circumstance.
From time to time, we may offer special incentive programs as part of our franchise development activities. We reserve the right to offer, modify or withdraw any incentive program without notice to you. We currently offer a 20% discount from the Initial Franchise Fee for Fly Fitness franchisees in good standing who wish to open an additional unit.
We will charge you a development fee ("Development Fee") when you sign the Multi-Unit Development Agreement. The Development Fee is an amount equal to $50,000 for the first unit, plus 50% of the discounted initial franchise fee for each additional Fly Fitness outlet you commit to develop under the Multi-Unit Development Agreement. For a three-unit commitment, the Development Fee is $75,000 and is calculated as follows, $50,000 + ((50% x $25,000) x2) = $75,000. The remaining balance of $12,500 per outlet shall be payable as the developer's subsequent sites are approved and franchise agreements signed. The Development Fee is fully earned by us and due in lump sum when you sign the Development Agreement. The Development Fee is not refundable under any circumstance.
From time to time, we may offer special incentive programs as part of our franchise development activities. We reserve the right to offer, modify or withdraw any incentive program
Source: Item 5 — INITIAL FEES (FDD page 8)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness may offer incentive programs related to the initial franchise fee from time to time. The standard initial franchise fee is $50,000, which is non-refundable.
Fly Fitness currently offers a specific incentive: a 20% discount on the initial franchise fee for existing Fly Fitness franchisees in good standing who want to open another unit. This reduces the initial franchise fee for these franchisees to $40,000.
Fly Fitness also offers multi-unit development agreements. The development fee for a three-unit commitment is $75,000, calculated as $50,000 for the first unit plus 50% of the discounted initial franchise fee for the additional two units. The remaining balance of $12,500 per outlet is payable as the developer's subsequent sites are approved and franchise agreements signed. Fly Fitness retains the right to modify or withdraw any incentive program without prior notice.