Can Fly Fitness replace the technology associated with the Internal Systems Fee?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
In Franchisor's sole discretion, Franchisor may (i) increase the amount of the internal systems fees or (ii) replace the technology with different technology, developed by Franchisor or a third-party, and Franchisee shall pay the then-
current fees for the replacement technology and for continuous access thereto.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness has the discretion to replace the technology associated with the Internal Systems Fee. Fly Fitness can replace the technology with different technology, whether developed by Fly Fitness or a third party. The franchisee is then obligated to pay the current fees for the replacement technology and for continuous access to it.
This means that as a Fly Fitness franchisee, you may be required to adopt new technologies and pay associated fees throughout the term of your franchise agreement. These changes are at Fly Fitness's discretion, and you will be responsible for covering the costs. This could include new software, platforms, or systems that Fly Fitness deems beneficial for the Fly Fitness system.
It is important for prospective franchisees to factor in the potential for technology upgrades and replacements when assessing the financial investment required for a Fly Fitness franchise. Understanding the frequency and potential costs of these changes is crucial for budgeting and financial planning. Franchisees should inquire about the typical lifecycle of technologies used in the Fly Fitness system and the estimated costs of replacement technologies to better prepare for these expenses.