What is the required cancellation notice period for unlimited monthly memberships at Fly Fitness, unless otherwise mandated by law?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- Credits (packages/intros) 23.7%
- Boutique 8%
- Penalty fees 2.4%
- Miscellaneous (Beverage, Shoe rentals, etc.) 1.8%
Unlimited monthly memberships make up a substantial portion of our existing corporate outlets. These contracts over recurring monthly rev
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 41–42)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, unlimited monthly memberships require a 30-day cancellation notice unless state or local laws mandate otherwise. These memberships, priced at $159 per month, represent a significant portion of the revenue for corporate-owned Fly Fitness outlets.
For a prospective franchisee, this means that the standard membership agreement should include a clause requiring members to provide a 30-day notice before canceling their unlimited monthly membership. However, it is crucial to be aware of and comply with any state or local laws that may supersede this requirement. These laws could potentially dictate a shorter or longer cancellation period, or impose additional conditions on membership cancellations.
Understanding the cancellation policy is important for revenue forecasting and managing member retention. Franchisees should consult with legal counsel to ensure their membership agreements are compliant with all applicable laws and regulations in their specific location. This will help avoid potential legal issues and ensure consistent application of the cancellation policy across all memberships.
Penalty fees accounted for 2.4% of revenue sources in 2023 from listed corporate outlets. While the document does not specify what portion of penalty fees are derived from membership cancellations, it is a potential revenue stream to consider.