What is the total term length of the licensing agreement between Fly Fitness and "Fly – A Fitness Revolution"?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
. There were no material transactions or events in the subsequent period requiring disclosure or recognition in the statements.
2. INTANGIBLE ASSETS
The Company entered into a licensing agreement with "Fly – A Fitness Revolution" during 2022 for the use of intellectual property, including trademarks, logos and the Fly Fitness name. This agreement included a $125,000 lump-sum p
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 44)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, Fly Fitness entered into a licensing agreement with "Fly – A Fitness Revolution" in 2022. This agreement grants Fly Fitness the right to use intellectual property, including trademarks, logos, and the Fly Fitness name.
In exchange for these rights, Fly Fitness made a one-time lump-sum payment of $125,000 at the beginning of the agreement. Additionally, Fly Fitness is obligated to pay an annual fee of $20,000 for the duration of the agreement.
The total term length for this licensing agreement between Fly Fitness and "Fly – A Fitness Revolution" is 10 years.