What is the initial non-compliance fee that Fly To Fit may charge a franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
g program after opening, Fly To Fit Franchise may charge its then-current training fee. As of the date of this Agreement, the training fee is $350 per day.
- 4.5 Non-Compliance Fee. Fly To Fit Franchise may charge Franchisee $500 for any instance of non-compliance with the System Standards or this Agreement (other than Franchisee's nonpayment of a fee owed to Fly To Fit Franchise) which Franchisee fails to cure after 30 days' notice. Thereafter, Fly To Fit Franchise may charge Franchisee $250 per week until Franchisee ceases such non-compliance. This fee is a reasonable estimate of Fly To Fit Franchise's internal cost of personnel time attributable to addressing the non-compliance, and it is not a penalty or estimate of all damages arising from Franchisee's br
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, they may charge a franchisee an initial non-compliance fee of $500 for any failure to comply with the System Standards or the Franchise Agreement. This fee applies to instances of non-compliance other than non-payment of fees owed to Fly To Fit.
The franchisee has a 30-day notice period to correct the non-compliance. If the franchisee fails to cure the non-compliance within this period, Fly To Fit may then charge an additional $250 per week until the non-compliance is resolved.
This non-compliance fee is considered a reasonable estimate of Fly To Fit's internal costs related to addressing the non-compliance and is not a penalty or an estimate of all potential damages resulting from the franchisee's breach. It's important to note that this fee is in addition to any other rights and remedies Fly To Fit has, including default and termination rights under the agreement.