When are payments for the initial inventory due for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Leasehold Improvements, Construction and/or Remodeling6 | $160,500 | $267,500 | As required by supplier, contractor, or landlord | Before opening, as required by supplier. | Suppliers, contractor and/or Landlord |
|---|---|---|---|---|---|
| Furniture, Fixtures and Equipment7 | $3,210 | $6,420 | As required by supplier | Before opening | Suppliers |
| Signage8 | $4,280 | $7,490 | As incurred | Before opening | Suppliers |
| Business Licenses and Permits9 | $214 | $535 | As required by government agencies | Before opening, as required by government agencies | Government Agencies |
| Computer | $1,605 | $2,140 | As required by | Before opening | Suppliers |
| Systems10 | suppliers | ||||
| Security System | $0 | $2,140 | As required by suppliers | Before opening | Suppliers |
| Initial Inventory to Begin Operating11 | $7,490 | $16,050 | As required by suppliers | Before opening | Suppliers and our affiliate |
| Supplies12 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the initial inventory payment, which ranges from $7,490 to $16,050, is due before opening. The payment is required by the suppliers and Fly Fitness's affiliate. This inventory includes retail or boutique items like leggings, tops, accessories, and Fly Fitness merchandise.
This means a prospective Fly Fitness franchisee must budget for this expense as part of their initial investment and ensure timely payment to suppliers to have the necessary inventory ready for the business's launch. Failure to secure the initial inventory on time could delay the opening of the franchise and impact initial revenue.
Franchisees should confirm with Fly Fitness which suppliers they must use and understand the payment terms required by those suppliers. Managing cash flow to cover this upfront inventory cost is crucial for a successful launch. It is also important to note that all fees and payments are non-refundable unless otherwise stated or permitted by the payee.