factual

Do Fly To Fit affiliates pay royalties or marketing fees?

Fly_To_Fit Franchise · 2024 FDD

Answer from 2024 FDD Document

Our Affiliates do not pay royalties or marketing fees to us; however, we have shown the estimated expenditures (5% Royalty, 1% Marketing Fund) for each Affiliate had they incurred those expenses.

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–41)

What This Means (2024 FDD)

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit affiliates do not pay royalties or marketing fees. However, the FDD includes estimated expenditures for royalty fees and marketing fund fees, calculated as if affiliates were to incur these expenses. These estimated expenditures are provided for illustrative purposes in the financial performance representation.

The document specifies that the estimated royalty fees would be $11,054.78, representing 5% of gross sales. The estimated marketing fund fees are $2,210.96, which is 1% of gross sales. These figures are based on the company-owned outlet's performance from January 1, 2023, to December 31, 2023, where the total sales were $221,095.66.

It is important to note that these are only estimates, and the financial performance of individual Fly To Fit franchise locations may vary. The FDD explicitly states that there is no assurance that a franchisee will achieve the same sales or earnings as the company-owned outlet. Prospective franchisees should consider these estimates as a hypothetical scenario and not as a guarantee of future financial results. Fly To Fit also emphasizes that they can provide written substantiation of the information contained in Item 19 upon reasonable request.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.