Is Fly To Fit Bungee Fitness, LLC an affiliate supplier for the Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
iates as Supplier
Our affiliate, Fly to Fit Bungee Fitness, LLC is currently a supplier of the bungee fitness systems you will purchase to operate the fitness studio. We reserve the right to be a supplier (or the sole supplier) of additional goods or services in the future.
Ownership of Suppliers
Outside of your requirement to use Fly to Fit Bungee Fitness for the bungee systems, none of our officers own any interest in any suppliers to our franchisees.
Alternative Suppliers
If you want to use a supplier that is not on our list of approved suppliers, you must request our approval in writing. We will grant or revoke approvals of suppliers based on criteria appropriate to the situation, which may include evaluations of the supplier's capacity, quality, financial stability, reputation, and reliability; inspections; product testing, and performance reviews. Our criteria for approving suppliers are not available to you. We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval. There is no fee for us to review or approve an alternate supplier. We will provide you with written notification of the approval or disapproval of any supplier you propose within 30 days after receipt of your request. We may grant approvals of new suppliers or revoke past approvals of suppliers on written notice to you, or by updating our Manual.
Issuing Specifications and Standards
We issue specifications and standards to you for applicable aspects of the franchise in our Manual and/or in written directives. We may issue new specifications and standards for any aspect of our brand system, or modify existing specifications and standards, at any time by revising our Manual and/or issuing new written directives (which may be communicated to you by any method we choose). We will generally (but are not obligated to) issue new or revised specifications only after thorough testing in our headquarters, in company-owned outlets, and/or a limited market test in multiple units.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–21)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit Bungee Fitness, LLC is an affiliate supplier. Specifically, Fly To Fit franchisees are required to purchase their bungee fitness products and systems from Fly To Fit Bungee Fitness, LLC. This means that as a franchisee, you do not have the option to source these essential items from other vendors unless Fly To Fit Bungee Fitness, LLC is no longer a supplier.
Fly To Fit retains the right to become the sole supplier of additional goods and services in the future. While franchisees can request approval for alternative suppliers, Fly To Fit's criteria for approval are not disclosed. Fly To Fit will notify the franchisee in writing of the approval or disapproval of any proposed supplier within 30 days of the request. Fly To Fit can also modify existing specifications and standards at any time by revising their manual or issuing new written directives.
Fly To Fit will derive revenue from these required purchases. The FDD states that for establishing and operating the business, the required purchases and leases are estimated to be 50% to 80% of the franchisee's total purchases and leases. While Fly To Fit does not currently receive payments from other designated suppliers, the franchise agreement does not prohibit them from doing so in the future. This arrangement is common in franchising, where franchisors often have approved suppliers to maintain quality control and brand consistency, and may receive revenue from these suppliers.