To whom are the premises lease and utility deposits paid for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 |
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 premises lease deposits are paid to the landlord, while utility deposits are paid to utility providers. These payments are due as required by the landlord and utility providers, respectively. The estimated initial investment for premises lease and utility deposits ranges from $3,745 to $6,420.
These deposits are part of the initial costs required to start a Fly Fitness franchise. The lease deposit ensures the franchisee fulfills the lease terms, and the utility deposit covers initial service costs. The FDD notes that the deposit amounts can vary based on location and the specific utility providers used.
Prospective franchisees should carefully review lease agreements and utility contracts to understand the specific deposit requirements for their location. These deposits may be refundable, either fully or partially, depending on the terms of the lease or rental contract. Franchisees should also budget for potential variations in real estate costs, which can significantly impact the total initial investment.