How is the monthly royalty fee for a Fly To Fit franchise calculated?

According to Fly To Fit's 2024 Franchise Disclosure Document, the monthly royalty fee, referred to as the "Royalty Fee", is calculated as 6% of the franchise's Gross Sales. This fee is due on the first Tuesday of the month following the month for which the sales are being reported.

Fly To Fit requires franchisees to report their monthly Gross Sales by the Tuesday of the following month. If a franchisee fails to report their Gross Sales on time, Fly To Fit has the right to estimate the Royalty Fees and Marketing Fund Contributions. This estimate will be equal to 125% of the last Gross Sales reported by the franchisee. Once the franchisee reports the actual Gross Sales, the fees will be adjusted to reflect the accurate amount owed.

Fly To Fit also retains the right to remotely access the franchisee's point-of-sale system to independently calculate Gross Sales. This provision ensures that Fly To Fit can verify the accuracy of the reported sales figures and collect the appropriate Royalty Fee. Franchisees should ensure they understand how Gross Sales are defined and tracked to avoid discrepancies.