Under what circumstances is the initial franchise fee for a Fly Fitness franchise refundable?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
se and Royalty Fee. As part of the consideration for the right to operate the Franchise granted herein, Franchisee shall pay to Franchisor the following fees:
- 6.1.1 Initial Franchise Fee. Franchisee acknowledges and agrees that the grant of this Franchise and the rights and obligations of the parties under this Agreement constitute the sole and only consideration for the initial franchise fee of Fifty Thousand Dollars ($50,000.00) (the "Initial Fee"). **The Initial Fee is fully earned at the time this F
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The FDD states that the franchisee acknowledges and agrees that the grant of the franchise and the rights and obligations of both parties under the Franchise Agreement constitute the sole consideration for the initial franchise fee of $50,000.
The document explicitly states that the initial fee is fully earned when the Franchise Agreement is signed. It further clarifies that the $50,000 initial fee is not refundable under any circumstances. The franchisee must pay the full amount of the initial fee to Fly Fitness upon executing the Franchise Agreement.
This non-refundable policy is a significant factor for potential Fly Fitness franchisees to consider. It means that once the Franchise Agreement is signed, the $50,000 is earned by Fly Fitness, regardless of whether the franchisee ever opens a Fly Fitness studio. Prospective franchisees should conduct thorough due diligence before signing the agreement to ensure they are fully committed to the franchise opportunity.