How long does a Fly To Fit franchisee have to reimburse Fly To Fit for amounts paid to a supplier on their behalf?

According to Fly To Fit's 2024 Franchise Disclosure Document, if Fly To Fit chooses to pay a franchisee's debt to a supplier or other third party, the franchisee is required to reimburse Fly To Fit within 15 days of receiving an invoice. This invoice will include the amount Fly To Fit paid on the franchisee's behalf, plus a 10% administrative charge. The invoice must also be accompanied by reasonable documentation of the payment.

This means that if Fly To Fit opts to assist a franchisee by covering their payments to suppliers, the franchisee must act quickly to repay the amount. The 10% administrative charge adds an extra cost to this arrangement, so franchisees should factor this into their financial planning. It is important to note that Fly To Fit is not obligated to make these payments, so franchisees cannot rely on this as a guaranteed form of assistance.

This type of arrangement, where the franchisor may step in to pay a franchisee's debts, is not typical in franchising. Usually, franchisees are solely responsible for managing their relationships with suppliers and ensuring timely payments. The fact that Fly To Fit may offer this assistance, even with the added administrative fee, could be seen as a potential benefit for franchisees who might occasionally face short-term cash flow challenges. However, franchisees should aim to maintain strong financial management practices to avoid relying on this option.