What is Fly To Fit's expectation regarding the franchisee's location: rent or purchase?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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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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- You will be required to purchase the furniture, fixtures and equipment from our approved vendors and suppliers. The actual bungee systems you will use for your fitness classes and routines will be purchased through
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- This includes any other required expenses you will incur before operations begin and during the initial period of operations, such as payroll, additional inventory, rent, and other operating expenses in excess of income generated by the business. It does not include any salary or compensation for you. In formulating the amount required for additional funds, we relied on the following factors, basis, and experience: the development of a Fly To Fit business by our affiliate, and our general knowledge of the industry.
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- This estimate assumes you sign a Multi-Unit Development Agreement for three to five franchises.
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, Fly To Fit expects that franchisees will rent their business location. The FDD estimates the initial investment costs based on this assumption. Specifically, the document includes an estimated range for 'Rent and Lease Security Deposit' between $2,500 and $12,500. These funds are paid via check to the landlord upon signing the lease.
Fly To Fit anticipates that franchisees will negotiate a 'free rent' period to offset the time required to build out the business before opening. However, the FDD notes that if a franchisee chooses to purchase real estate instead of renting, their costs will be significantly different. This implies that while purchasing is an option, the initial investment figures provided are not representative of that scenario.
Prospective franchisees should consider that the 'Additional funds' category, estimated between $20,000 and $40,000, includes rent for the first three months of operation. This further reinforces the expectation of renting. If a franchisee intends to purchase property, they should inquire with Fly To Fit about the potential adjustments to the initial investment estimates and the implications for ongoing operational costs.