To whom are payments for supplies made for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
AL INVESTMENT**
Single Unit:
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment is Made | |---|---|---|---|---|---| | Initial Franchise Fee1 | $50,000 | $50,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Us | | Your Training Expenses2 | $2,889 | $6,420 | As required for trans- portation, lodging & meals | As required by suppliers of transportation, lodging & meals. | Suppliers of transportation, lodging & meals. | | Premises lease and utility deposits3 | $3,745 | $6,420 | As required by landlord | As required by landlord | Landlord | | Three Month’s Rent4 | $11,235 | $25,680 | As required by utility providers | As required by utility providers | Utility providers | | Architectural Plans5 | $10,700 | $21,400 | As required by supplier | Before opening as required by supplier | Supplier | 7 We may establish quality assurance programs conducted by third-party providers, such as, by way of example only, mystery shop programs and periodic quality audits, to monitor the operations of your Franchised Business. If we require it, you must subscribe and pay the fees for any such program.
8 You must indemnify and hold us, our affiliates, and all of our respective officers, directors, agents and employees harmless from and against any and all claims, losses, costs, expenses, liability and damages arising directly or indirectly from, as a result of, or in connection with your business operations under the Franchise Agreement, as well as the costs, including attorneys' fees, of defending against them.
9 If you fail to do so, in our sole discretion, we may correct any deficiency in the Franchised Business and/or your operation of the Franchised Business or take steps to modify, alter or deidentify the Franchised Business location upon the termination or expiration of the Franchise Agreement. You will reimburse us for our costs and expenses incurred to correct any deficiency or to modify, alter or de-identify the Franchised Business location.
| Leasehold Improvements, Construction and/or Remodeling6 | $160,500 | $267,500 | As required by supplier, contractor, or landlord | Before opening, as required by supplier.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, payments for various supplies are typically made to different entities. The payments for the initial franchise fee are made to Fly Fitness itself. Payments for transportation, lodging, and meals during training are made to the suppliers of those services. Premises lease and utility deposits are paid to the landlord and utility providers, respectively. Payments for architectural plans are made to the supplier.
For leasehold improvements, construction, and/or remodeling, payments are directed to suppliers, contractors, or the landlord. Payments for furniture, fixtures, equipment, signage, computer systems, and security systems are made to the respective suppliers. The initial inventory payments are made to suppliers and Fly Fitness's affiliate. Payments for general supplies are made to suppliers. Professional fees are paid to attorneys, accountants, and other professional service providers. Payments for fitness equipment are made to suppliers. Grand opening advertising expenses are paid to the supplier. Insurance payments are made to the insurer. Finally, operating expenses and additional funds are paid to employees, utilities, and suppliers.
Prospective Fly Fitness franchisees should note that the specific 'To Whom Payment is Made' column in Item 7 provides a detailed breakdown of where initial investment funds are directed. This information is crucial for budgeting and understanding the financial obligations when starting the franchise. The estimates provided are based on the experience of Fly Fitness's affiliate-owned outlets, but actual costs may vary depending on location, specific needs, and vendor choices.