Are there any fees in Item 6 of the Fly Fitness FDD that are not uniformly imposed?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
All fees and expenses described in this Item 6 are nonrefundable and are uniformly imposed. Except as otherwise indicated in the preceding chart, we impose all fees and expenses listed and you must pay them to us.
Source: Item 6 — OTHER FEES (FDD pages 8–14)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the fees and expenses outlined in Item 6 are uniformly imposed. This means that all franchisees are generally expected to pay the same fees under the same conditions.
The FDD specifies several fees, including a Continuing Royalty Fee of 7% of weekly Gross Revenue, which is paid weekly. Franchisees must also spend at least $15,000 on local advertising and marketing six weeks prior to and two months following the opening of their Fly Fitness franchise. After that initial period, franchisees must spend a minimum of $500 per month on local advertising and marketing. Additionally, there is a Brand Fund Contribution of 2% of weekly Gross Revenue, due at the same time as the Royalty Fee.
Fly Fitness also reserves the right to charge franchisees for the actual cost of inspecting and testing equipment, supplies, services, or other items from unapproved suppliers if the franchisee seeks approval for these items. While the fees themselves are uniformly imposed, the actual cost for inspections and testing could vary depending on the specific item or service being evaluated. Franchisees should be aware of these potential costs when considering unapproved suppliers.