What is included in the Fly To Fit Third-Party Vendor fee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| 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. |
| Local Marketing/Required Spending | 5% of your gross sales | Monthly | You may only use promotional materials you have purchased from us or that we have provided to you. |
| Replacement / Additional Training fee | Currently, $350 per day | Prior to attending training | If you send a manager or other employee to our training program after you open, we will charge our then-current training fee. |
| Third party vendors | Pass-through of costs, plus reasonable administrative charge. Currently, none. | Varies | We have the right to require franchisees to use third-party vendors and suppliers that we designate. Examples can include computer support vendors, mystery shopping, and customer feedback systems. The vendors and suppliers may bill franchisees directly, or we have the right to collect payment for these vendors together with a reasonable markup or charge for administering the payment program. |
| Software subscription | Currently, $130 per month, does not include merchant processing fees | Monthly | We require you to use certain software as described in Item 11. You pay subscription fees directly to the software supplier, and not to us. |
| Non-compliance fee | $500 | On demand | We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days' notice. Thereafter, we may charge you $250 per week until you correct such n |
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 third-party vendor fee is a pass-through of costs, plus a reasonable administrative charge. Currently, there is no fee. Fly To Fit retains the right to require franchisees to use designated third-party vendors and suppliers, which may include computer support vendors, mystery shopping services, and customer feedback systems.
The vendors and suppliers may bill Fly To Fit franchisees directly. Alternatively, Fly To Fit has the right to collect payments for these vendors, adding a reasonable markup or charge to cover the administrative costs of managing the payment program. This means that franchisees could potentially pay more than the direct cost of the vendor services due to the administrative charge added by Fly To Fit.
As a prospective Fly To Fit franchisee, it's important to understand which specific vendors and services are required, the estimated costs of those services, and the amount of the administrative charge that Fly To Fit may add. This will help in budgeting and forecasting expenses. It is also important to note that the fee is currently none, but this could change.