To whom are payments for initial inventory made 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 |
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 payments for the initial inventory to begin operating are made to suppliers and Fly Fitness's affiliate. The initial inventory, which includes retail or boutique inventory such as leggings, tops, accessories, and Fly Fitness merchandise, is estimated to cost between $7,490 and $16,050. These payments are due before opening the franchise.
This means that a prospective Fly Fitness franchisee should budget between $7,490 and $16,050 for the initial stock of retail items and Fly Fitness branded merchandise. It is important to note that the franchisee will need to establish relationships with approved suppliers to source these items. A portion of the payment may be directed to Fly Fitness's affiliate, indicating a possible direct purchasing arrangement for branded merchandise.
Understanding the specific suppliers and the payment process is crucial for managing cash flow during the initial setup phase. Franchisees should confirm with Fly Fitness which suppliers are approved and whether there are any specific requirements for purchasing inventory. It is also important to clarify the payment methods accepted by both the suppliers and Fly Fitness's affiliate to ensure a smooth procurement process.