What is the payment schedule for the remaining balance of the Fly Fitness development fee after the initial payment?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
n 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 u
Source: Item 5 — INITIAL FEES (FDD page 8)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, when a franchisee signs a Multi-Unit Development Agreement, they must pay a development fee. For a three-unit commitment, the development fee totals $75,000, calculated as $50,000 for the first unit plus 50% of the discounted initial franchise fee ($25,000) for each additional unit.
The initial payment of the development fee is due in a lump sum when the franchisee signs the Development Agreement. For a three-unit commitment, the initial payment is the full $75,000.
The remaining balance of $12,500 per outlet is payable as the developer's subsequent sites are approved and franchise agreements are signed. This means that for each additional Fly Fitness location beyond the first, the franchisee will pay $12,500 once the site for that location has been approved and the franchise agreement has been signed.