Does Fly Fitness receive payments from suppliers related to a franchisee's required purchases or leases?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.7. List of Suppliers. Make available from time to time, and amend as deemed appropriate by Franchisor, a list of approved and/or recommended suppliers of products and services for System franchisees and a list of approved and/or recommended suppliers of such items. Franchisee acknowledges that Franchisor or Franchisor's affiliate(s) may be the sole approved supplier(s) of certain products and services that Franchisee is required to purchase to operate the Franchised Business.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness may receive payments from approved suppliers. Specifically, Fly Fitness, or its affiliates, may be the sole approved supplier of certain products and services that a franchisee is required to purchase to operate their Fly Fitness franchise.
This arrangement means that Fly Fitness franchisees may be obligated to purchase specific products or services exclusively from Fly Fitness or its affiliates. This requirement ensures brand consistency and quality control across all franchise locations.
However, it also potentially limits a franchisee's ability to seek out alternative suppliers or negotiate better prices. The franchisee may not have the option to choose suppliers based on cost or other factors, as Fly Fitness has the right to be the sole approved supplier.
Prospective franchisees should inquire about which products and services they are required to purchase from Fly Fitness or its affiliates, and what the costs associated with these purchases will be. Understanding these requirements is crucial for assessing the overall profitability and operational flexibility of a Fly Fitness franchise.