To whom are the training expenses 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. |
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 training expenses, which range from $2,889 to $6,420, cover transportation, lodging, and meals for the franchisee's trainees. These expenses are paid to the suppliers of transportation, lodging, and meals. The cost of the Initial Management Training Program for up to three people is included in the Initial Franchise Fee.
These incidental costs for transportation, lodging, and meals are not included in the initial franchise fee. The franchisee's actual costs will vary depending on the number of people attending training, their point of origin, method of travel, class of accommodation, and living expenses. The training program lasts for five days, and the estimate does not include employee wages.
Prospective Fly Fitness franchisees should factor in these variable training expenses when budgeting their initial investment. It's important to note that these costs are in addition to the initial franchise fee and can fluctuate based on logistical choices. Understanding these payment obligations is crucial for managing cash flow during the initial setup phase.