Does Fly To Fit derive revenue from required purchases and leases by franchisees?

According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit does derive revenue from required purchases and leases by franchisees. As a new franchisor, Fly To Fit's total revenue in the prior fiscal year was $0, and the revenue from all required purchases and leases of products and services by franchisees in the prior fiscal year was also $0, representing 0% of total revenues. However, the document states that Fly To Fit will derive revenue from these required purchases and leases.

The FDD outlines specific obligations for franchisees regarding purchases and leases. Franchisees must purchase or lease point-of-sale software and hardware as specified by Fly To Fit. They are also required to purchase bungee fitness products and systems from Fly To Fit's affiliate, Fly To Fit Bungee Fitness, LLC. All other purchases of fixtures and equipment related to the business must be made through Fly To Fit's approved vendors. These requirements ensure that Fly To Fit can maintain brand standards and quality control across all franchise locations.

Fly To Fit estimates that required purchases and leases account for 50% to 80% of the total purchases and leases needed to establish the business, as well as 50% to 80% of the total ongoing purchases and leases to operate the business. While Fly To Fit does not currently receive payments from designated suppliers based on franchisee purchases, the franchise agreement does not prohibit them from doing so in the future. This means that Fly To Fit could potentially generate additional revenue through supplier agreements, a common practice in franchising.