What period does the Gross Revenue Report cover for Fly Fitness?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
ross Revenue does not include gift card purchases, at the time of purchase, but Gross Revenue does include the redemption amount of purchases made by gift card.
- 6.1.3 Gross Revenue Reports. Franchisee shall, every Wednesday for the week prior (Monday through Sunday), furnish Franchisor with a report showing Franchisee's Gross Revenue at or from the Franchised Business and/or made pursuant to the rights granted hereunder during such period (the "Gross Revenue Report"). The Gross Revenue Report shall be in such form and shall contain such information as Franchisor may from time to time prescribe. Franchisor reserves the right to establish a point-of-sale system ("POS System") that Franchisor may require Franchisee to use in the operation of the Franchised Business. At Franchisor's option, Franchisee shall submit, or grant Franchisor access to, the Gross Revenue Report by an electronic transfer of data via the POS System at the times and interims then specified by Franchisor.
- 6.1.4 Method of Payment. Franchisee shall, together with the submission of the Gross Revenue Report, pay Franchisor the Royalty Fee and the Brand Fund Contribution, as defined, and more particularly described in Article 13, then due. At Franchisor's request, Franchisee must execute documents that allow Franchisor to automatically take the Royalty Fee and Brand Fund Contribution due as well as other sums due Franchisor, from business bank accounts via electronic funds transfers. Franchisee's failure to allow electronic funds transfers on an ongoing basis is a material breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the Gross Revenue Report that franchisees must furnish to Fly Fitness covers the period from Monday through Sunday of the prior week. Franchisees are required to submit this report every Wednesday. The report must detail the franchisee's gross revenue generated at or from the franchised business, or made pursuant to the rights granted under the franchise agreement, during that Monday-to-Sunday period.
Fly Fitness retains the right to specify the form and information required in the Gross Revenue Report, and may also require franchisees to use a point-of-sale (POS) system for operation of the franchised business. At Fly Fitness's discretion, franchisees may be required to submit the Gross Revenue Report electronically via the POS system at times specified by Fly Fitness.
In conjunction with submitting the Gross Revenue Report, franchisees must pay Fly Fitness the royalty fee and brand fund contribution that are due. Fly Fitness can request franchisees to authorize automatic electronic fund transfers from their business bank accounts for these payments. Failure to allow electronic fund transfers is considered a material breach of the franchise agreement. However, Fly Fitness reserves the right to change the method and frequency of collecting the royalty fee and brand fund contribution, providing 90 days' prior notice to the franchisee.