What is the calculation for the reimbursement fee charged to a Fly To Fit franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Reimbursement | Amount that we spend on your behalf, plus 10% | Within 15 days of invoice | If we pay any amount that you owe or are required to pay to a third party, you must reimburse us. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if Fly To Fit pays an amount that a franchisee owes to a third party, the franchisee must reimburse Fly To Fit. The reimbursement fee is calculated as the amount Fly To Fit spent on the franchisee's behalf, plus an additional 10%. This reimbursement is due within 15 days of the invoice date.
For example, if Fly To Fit paid a $1,000 bill on behalf of a franchisee, the franchisee would owe Fly To Fit $1,100 ($1,000 + 10% of $1,000). This fee covers situations where Fly To Fit steps in to cover a franchisee's financial obligations to a third party.
It is important for prospective Fly To Fit franchisees to understand this policy, as it means they are responsible for promptly repaying any debts settled by Fly To Fit on their behalf, along with the additional 10% charge. Failure to do so could potentially lead to further fees or other repercussions as outlined in the franchise agreement.