In what year did Fly Fitness enter into the licensing agreement with "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, the company entered into a licensing agreement with "Fly – A Fitness Revolution" during 2022. This agreement grants Fly Fitness the right to use intellectual property, including trademarks, logos, and the Fly Fitness name.
At the inception of the agreement, Fly Fitness made a lump-sum payment of $125,000. In addition to this initial payment, Fly Fitness is obligated to pay an annual fee of $20,000 for the duration of the 10-year contract.
This licensing agreement is a significant asset for Fly Fitness, as it provides the legal basis for using the brand's identity and associated intellectual property. For a prospective franchisee, understanding the terms of this agreement is crucial, as it ensures that Fly Fitness has the rights necessary to allow franchisees to operate under the brand name and utilize its marketing materials.