How are payments to the Brand Fund made and when are they due for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.3.1. Franchisor has established a national fund on behalf of the System for national advertising, marketing, and brand development (the "Brand Fund"). Franchisee is required to contribute to the Brand Fund two percent (2%) of the weekly Gross Revenue generated by the Franchised Business ("Brand Fund Contribution"). Payments will be made in the same manner and time as the Royalty Fees. If Franchisee fails to timely report Gross Revenue, then, in addition to a late fee and interest pursuant to Sections 6.2 and 6.3 hereof, Franchisor shall collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable. Franchisor shall reconcile amounts when Gross Revenue are reported.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund, which is used for national advertising, marketing, and brand development. This contribution, referred to as the "Brand Fund Contribution," is two percent (2%) of the weekly Gross Revenue generated by the franchised business.
The Brand Fund contributions must be paid in the same manner and at the same time as the royalty fees. The FDD does not specify the exact method or timing of royalty fee payments, so a prospective franchisee should clarify this with Fly Fitness.
If a Fly Fitness franchisee fails to report Gross Revenue on time, they will be subject to a late fee and interest, as well as an additional charge. Fly Fitness will collect one hundred twenty percent (120%) of the last Brand Fund Contribution payable until the Gross Revenues are reported, at which point amounts will be reconciled.