How are dues for the Fly To Fit Market Cooperative imposed?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Market Cooperative Contribution | As determined by co-op. Currently, none. | Monthly, by the 1st Tuesday of the following month | We have the right to establish local or regional advertising cooperatives. The maximum contribution that a co-op may require is 5% of gross sales. Any location owned by us or any affiliate will have the same voting rights as our franchisees. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. If any location owned by us or any affiliates have a majority vote, the maximum fees imposed will not exceed 3% of gross sales. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the Market Cooperative Contribution is determined by the co-op itself. Currently, there are no dues. However, Fly To Fit retains the right to establish local or regional advertising cooperatives.
The maximum contribution that a co-op may require is 5% of gross sales. Dues will be imposed by a majority vote and will not be less than 1% of gross sales. These contributions are due monthly, by the 1st Tuesday of the following month.
If Fly To Fit or any of its affiliates owns a location and has a majority vote within the cooperative, the maximum fees imposed will not exceed 3% of gross sales. This condition protects franchisees from potentially excessive fees if the franchisor has significant control over the cooperative's decisions. A prospective franchisee should inquire about the specific conditions under which such cooperatives might be formed and how voting rights are distributed to fully understand the potential financial impact.