What is the estimated range for rent and lease security deposit for a Fly To Fit franchise?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of expenditure | Amount | Method of payment | When due | To whom payment is to be made | |
|---|---|---|---|---|---|
| Initial franchise fee (see | $30,000 - | $30,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Note 1) | |||||
| Rent and Lease Security | $2,500 - | $12,500 | Check | Upon signing lease | Landlord |
| Deposit (see Note 2) |
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- Our estimates in this table assume you pay one month rent plus a security deposit before you open for business. For this to occur, you would need to negotiate a "free rent" period for the time it takes to build out your business. We expect that you will rent your location. If you choose to purchase real estate instead of renting, your costs will be significantly different.
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- Your lease security deposit and utility deposits will usually be refundable unless you owe money to the landlord or utility provider. None of the other expenditures in this table will be refundable. Neither we nor any affiliate finances any part of your initial investment.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–19)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, the estimated initial investment for rent and lease security deposits ranges from $2,500 to $12,500. This payment is typically made via check to the landlord upon signing the lease.
Note 2 of Item 7 clarifies that this estimate assumes the franchisee pays one month's rent plus a security deposit before opening the Fly To Fit business. The FDD indicates that to achieve this, franchisees would need to negotiate a "free rent" period to cover the time required for building out the business location. Fly To Fit expects franchisees will rent their location, and the costs would be significantly different if a franchisee chooses to purchase real estate instead.
It's important to note that the lease security deposit is usually refundable unless the franchisee owes money to the landlord. This potential refundability distinguishes it from other initial expenditures listed in Item 7, which are generally non-refundable. Prospective franchisees should carefully review lease terms and negotiate favorable conditions to manage these initial costs effectively.