Who is responsible for paying the technology fees required for operating a Fly Fitness franchised business?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
- 12.3.7.
In addition to the requirements of Section 6.6, Franchisee shall pay all fees, whether to Franchisor or to third party vendor(s), and expenses for technology required by this Agreement for operation of the Franchised Business, including but not limited to, the costs of computer hardware and software and applications, installation costs and regularly recurring fees for software and digital menu displays, Internet access, license fees, help desk fees, and licensing or user-based fees.
- 12.3.8.
Franchisee is solely responsible for maintaining the security and integrity of the computer and payment processing systems used in the Franchised Business and the customer and other data stored therein.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the franchisee is responsible for paying all technology fees required for operating the franchised business. This includes fees paid to Fly Fitness or to third-party vendors. These technology costs include computer hardware and software, applications, installation, recurring software and digital menu display fees, internet access, license fees, help desk fees, and licensing or user-based fees.
This means that a Fly Fitness franchisee must budget for these ongoing technology expenses in addition to the initial franchise fee, royalties, and other operating costs. The franchisee should carefully review the technology requirements outlined in the franchise agreement to understand the full scope of these costs. It is important to note that these costs can vary depending on the specific technology solutions implemented by Fly Fitness and the vendors they use.
Prospective franchisees should inquire about the typical range of these technology fees and how they may change over time. Understanding these costs is crucial for accurately projecting the profitability of a Fly Fitness franchise. Additionally, franchisees are responsible for maintaining the security of their computer and payment processing systems, adding another layer of responsibility and potential expense.