How often is the Continuing Royalty Fee paid for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Continuing Royalty Fee | 7% of weekly Gross Revenue | Weekly on Wednesday for Gross Revenue of the prior week (Monday through Sunday). | Payable to us. See footnote 1. |
Source: Item 6 — OTHER FEES (FDD pages 8–14)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Continuing Royalty Fee is paid weekly. The franchisee must pay Fly Fitness a Continuing Royalty Fee equal to 7% of the Gross Revenue generated weekly by the Franchised Business.
The Gross Revenue is calculated from Monday through Sunday, and the royalty payment is due every Wednesday for the prior week's revenue. The franchisee is required to authorize Fly Fitness to electronically transfer funds from their bank account to Fly Fitness's bank account for royalty payments.
If a Fly Fitness franchisee fails to report revenues for the month, Fly Fitness will collect 120% of the last Continuing Royalty Fee collected. The balance will then be settled the next period in which the franchisee reports revenue. Interest and late fees will apply to any late payments or electronic funds transfer requests denied due to insufficient funds.