What is the relocation fee for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
You may not change the location of your Franchised Business, without our written consent, which we may withhold in our sole discretion. The conditions under which we may allow you to relocate include the following: loss of your premises not due to your default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. If you wish to relocate, you must identify a new location for the Franchised Business that meets our approval, in accordance with our then-current site selection procedures, within 60 days. If you do not identify a site within this time period, we may terminate the Franchise Agreement. While you are closed for relocation, you must continue to pay us a minimum Royalty and Brand Fund contribution equal to the average paid during the four (4) calendar quarters immediately preceding the loss of your premises. Should we consent to your relocation, you will be required to pay us a relocation fee equal to twenty-five percent (25%) of the then-current initial franchise fee.
Source: Item 12 — TERRITORY (FDD pages 29–31)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, a franchisee must pay a relocation fee if they wish to move their franchise location and Fly Fitness approves the relocation. This fee is equal to twenty-five percent (25%) of the then-current initial franchise fee.
Several conditions must be met before Fly Fitness will consider allowing a relocation. These include loss of the premises not due to the franchisee's default, demographics of the surrounding area, proximity to other Fly Fitness outlets, lease requirements, traffic patterns, vehicular and pedestrian access, proximity to major roads, available parking, and overall suitability. The franchisee must identify a new location that meets Fly Fitness's approval within 60 days, following the franchisor's then-current site selection procedures. Failure to identify a suitable site within this timeframe may result in termination of the Franchise Agreement.
During the relocation period, even while the Fly Fitness location is closed, the franchisee must continue to pay a minimum Royalty and Brand Fund contribution. This ongoing payment is calculated based on the average paid during the four calendar quarters immediately preceding the loss of the premises. This ensures Fly Fitness continues to receive revenue even while the franchise is not operational due to relocation.