What is the total estimated low initial investment for a single unit Fly Fitness franchise?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
AL INVESTMENT**
Single Unit:
| 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 | | Architectural Plans5 | $10,700 | $21,400 | As required by supplier | Before opening as required by supplier | Supplier | 7 We may establish quality assurance programs conducted by third-party providers, such as, by way of example only, mystery shop programs and periodic quality audits, to monitor the operations of your Franchised Business. If we require it, you must subscribe and pay the fees for any such program.
8 You must indemnify and hold us, our affiliates, and all of our respective officers, directors, agents and employees harmless from and against any and all claims, losses, costs, expenses, liability and damages arising directly or indirectly from, as a result of, or in connection with your business operations under the Franchise Agreement, as well as the costs, including attorneys' fees, of defending against them.
9 If you fail to do so, in our sole discretion, we may correct any deficiency in the Franchised Business and/or your operation of the Franchised Business or take steps to modify, alter or deidentify the Franchised Business location upon the termination or expiration of the Franchise Agreement. You will reimburse us for our costs and expenses incurred to correct any deficiency or to modify, alter or de-identify the Franchised Business location.
| Leasehold Improvements, Construction and/or Remodeling6 | $160,500 | $267,500 | As required by supplier, contractor, or landlord | Before opening, as required by supplier.
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 total estimated initial investment for a single Fly Fitness franchise ranges from $331,558 to $617,705. This overall estimate includes various expenses that a new franchisee can expect to incur when starting their business. These expenses cover a wide range of items, from the initial franchise fee and training expenses to leasehold improvements, equipment, and initial advertising.
The initial investment includes a $50,000 initial franchise fee. Additionally, franchisees should budget for expenses such as premises lease and utility deposits, which range from $3,745 to $6,420, and three months' rent, estimated between $11,235 and $25,680. Leasehold improvements can be a significant cost, with estimates ranging from $160,500 to $267,500. Fitness equipment costs are estimated to be between $32,100 and $128,400.
Other notable costs include grand opening advertising ($15,000 to $21,400) and operating expenses/additional funds for the first three months ($21,400 to $42,800). These figures provide a comprehensive overview of the financial commitment required to start a Fly Fitness franchise. It is important to note that these are estimates, and actual costs may vary depending on location, specific circumstances, and the franchisee's management skills.
Prospective franchisees should carefully review these figures with a business advisor to understand the full scope of the investment and plan accordingly. Understanding these initial investment costs is crucial for anyone considering opening a Fly Fitness franchise, as it allows for realistic financial planning and assessment of the business opportunity.