To whom is the three months' rent paid for a Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Expenditure | Low | High | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $50,000 | $50,000 | Lump sum payment in cash or available funds. | Upon signing the Franchise Agreement. | Us |
| Your Training Expenses2 | $2,889 | $6,420 | As required for trans- portation, lodging & meals | As required by suppliers of transportation, lodging & meals. | Suppliers of transportation, lodging & meals. |
| Premises lease and utility deposits3 | $3,745 | $6,420 | As required by landlord | As required by landlord | Landlord |
| Three Month’s Rent4 | $11,235 | $25,680 | As required by utility providers | As required by utility providers | Utility providers |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 14–18)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the three months' rent is paid to utility providers. This is based on the table outlining the estimated initial investment, which details various expenditures a new franchisee can expect. The amount due for three months' rent is estimated to be between $11,235 and $25,680.
It's important to note that while the table specifies payment to utility providers, the document also mentions that the premises lease and utility deposits are paid to the landlord. This suggests that the three months' rent expenditure may cover utility costs rather than the base rent for the property itself.
Prospective Fly Fitness franchisees should clarify with the franchisor whether this "three months' rent" refers specifically to utility costs, or if it includes a portion of the base rent paid to the landlord. Understanding this distinction is crucial for accurate financial planning and budgeting during the initial phase of establishing the franchise.