What entities can Fly To Fit designate for franchisees to purchase or lease Inputs from?

According to Fly To Fit's 2024 Franchise Disclosure Document, franchisees may be required to purchase or lease inputs from specific entities. These entities can include Fly To Fit itself, a designee of Fly To Fit, Required Vendors, Approved Vendors, or vendors that meet Fly To Fit's specifications. Fly To Fit also retains the right to change these requirements or the status of any vendor, ensuring that franchisees adhere to the current System Standards.

This requirement means that franchisees may have limited flexibility in choosing suppliers and must adhere to Fly To Fit's approved sources for inputs. This could impact costs and potentially limit a franchisee's ability to negotiate better deals with alternative suppliers. However, franchisees do have the option to request approval for alternate vendors if they desire to purchase inputs from a different source than those designated by Fly To Fit.

To request an alternate vendor, franchisees must submit a written request for approval, along with any information, specifications, and samples requested by Fly To Fit. Fly To Fit will then provide written notification of the approval or disapproval of the proposed alternate input within 30 days of receiving the request. This process ensures that Fly To Fit maintains control over the quality and standards of inputs used in the Fly To Fit business, while also providing franchisees with a mechanism to propose alternative options.

Fly To Fit may also negotiate prices and terms with vendors on behalf of the entire system and may receive rebates, payments, or other considerations from vendors based on franchisee purchases. They also have the right to collect payments from franchisees on behalf of a vendor and remit those payments, potentially including a markup for administering the payment program. These practices are common in franchising, allowing the franchisor to leverage the collective buying power of the franchise network.