How long does a Fly To Fit franchisee have to reimburse Fly To Fit for amounts paid on their behalf?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
- 4.6 Reimbursement. Fly To Fit Franchise may (but is never obligated to) pay on Franchisee's behalf any amount that Franchisee owes to a supplier or other third party. If Fly To Fit Franchise does so or intends to do so, Franchisee shall pay such amount plus a 10% administrative charge to Fly To Fit Franchise within 15 days after invoice by Fly To Fit Franchise accompanied by reasonable documentation.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if Fly To Fit pays an amount that a franchisee owes to a supplier or other third party, the franchisee must reimburse Fly To Fit within 15 days of receiving an invoice. The invoice will include reasonable documentation of the payment.
In addition to the original amount paid on the franchisee's behalf, Fly To Fit will also charge a 10% administrative fee. This means that if Fly To Fit pays $1,000 to a supplier on behalf of the franchisee, the franchisee will owe Fly To Fit $1,100 ($1,000 + $100 administrative fee).
This arrangement is not an obligation for Fly To Fit, but rather a discretionary action they may take. It is important for prospective franchisees to understand this reimbursement policy and ensure they have sufficient funds to cover such payments within the specified timeframe to avoid any potential late fees or other penalties outlined in the franchise agreement.