Can Fly To Fit collect payment for third-party vendors with a markup?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has the right to collect payments for third-party vendors with a markup. The FDD specifies that Fly To Fit can require franchisees to use designated third-party vendors and suppliers, such as computer support vendors, mystery shopping services, and customer feedback systems.
The vendors can bill the Fly To Fit franchisees directly, or Fly To Fit can collect payments from franchisees on behalf of the vendors. If Fly To Fit collects the payments, they may include a reasonable markup or charge for administering the payment program. Currently, there are no third-party vendors that Fly To Fit requires franchisees to use.
This means that Fly To Fit franchisees may be required to use specific vendors chosen by the franchisor and either pay those vendors directly or pay Fly To Fit, who will then pay the vendors, potentially adding an administrative charge. It is important for prospective franchisees to understand which vendors they may be required to use and what the potential costs and administrative charges could be.