When are all franchise fees due for a Fly To Fit Multi-Unit Development Agreement?

According to Fly To Fit's 2024 Franchise Disclosure Document, if you sign a Multi-Unit Development Agreement (MUDA) for three to five franchises, you will pay all franchise fees upon signing the MUDA. The franchise fee for the first Fly To Fit unit is accounted for in the "Estimated Initial Investment Franchise Agreement" table. The initial franchise fees are reduced to $25,000 for the second and each additional franchise.

This means that a prospective Fly To Fit franchisee entering into a Multi-Unit Development Agreement will need to have the full amount of the franchise fees available at the time of signing the agreement. This is a standard practice in franchising, as it secures the franchisee's rights to develop multiple units within a specified territory.

For example, if a franchisee signs a MUDA for three Fly To Fit franchises, they will pay the initial franchise fee for the first unit (between $30,000) as outlined in the Franchise Agreement table, and then $25,000 for each of the two additional franchises, totaling $80,000 plus the initial franchise fee for the first unit. This up-front payment is non-refundable, so it's crucial to carefully consider the commitment before signing the agreement.