How is the Fly To Fit non-compliance cure cost and fee calculated?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
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| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Special inspection fee | Currently $600, plus our out-of-pocket costs | On demand | Payable only if we conduct an inspection of your business because of a governmental report, customer complaint or other customer feedback, or your default or non-compliance with any system specification. |
| Non-compliance cure costs and fee | Our out-of-pocket costs and internal cost allocation, plus 10% |
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 non-compliance cure costs and fee are calculated based on Fly To Fit's out-of-pocket costs and internal cost allocation, plus an additional 10%. This fee is charged when Fly To Fit takes action to correct a franchisee's non-compliance on their behalf.
For example, if a Fly To Fit franchisee fails to maintain the required insurance coverage, Fly To Fit may purchase the necessary insurance for the franchisee. In such a case, the franchisee would be responsible for reimbursing Fly To Fit for the cost of the insurance, in addition to a 10% administrative fee.
This policy ensures that Fly To Fit franchisees adhere to the franchise agreement and system standards. It also provides Fly To Fit with a mechanism to recover expenses incurred while ensuring compliance across all franchise locations. The fee is billed to the franchisee when the costs are incurred.