When are the costs of collection due from a Fly To Fit franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Costs of collection | Our actual costs | As incurred | Payable if we incur costs (including reasonable attorney fees) in attempting to collect amounts you owe to 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, franchisees are responsible for covering the brand's costs of collection. These costs, which include reasonable attorney fees, are due as they are incurred by Fly To Fit while attempting to collect amounts owed by the franchisee. This means that a franchisee will need to pay these costs as Fly To Fit incurs them during the collection process.
This condition is fairly standard in franchising, as franchisors seek to recover any expenses they incur while trying to recoup owed payments. The franchisee is responsible for the actual costs incurred by Fly To Fit, providing some transparency into the collection expenses.
Prospective franchisees should be aware that these costs can accumulate quickly if Fly To Fit has to take significant action to recover overdue amounts. It is crucial to maintain timely payments to avoid triggering the cost of collection and potentially incurring legal fees.