Is nonpayment of a fee owed to Fly To Fit subject to the non-compliance fee?
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, nonpayment of a fee owed to Fly To Fit is specifically excluded from being subject to the non-compliance fee. Fly To Fit may charge a franchisee $500 for any instance of non-compliance with the System Standards or the Franchise Agreement. However, this fee does not apply to the franchisee's nonpayment of a fee owed to Fly To Fit, provided the franchisee fails to cure the non-compliance after 30 days' notice.
After the initial 30-day period, Fly To Fit may charge the franchisee $250 per week until the non-compliance ceases. The FDD states that this fee is a reasonable estimate of Fly To Fit's internal cost of personnel time spent addressing the non-compliance and is not a penalty or estimate of all damages arising from the franchisee's breach.
The non-compliance fee is in addition to all of Fly To Fit's other rights and remedies, including default and termination under Section 14.2 of the agreement. This means that while nonpayment of fees isn't subject to the non-compliance fee, Fly To Fit has other avenues to address such nonpayment, such as late fees, interest, and potentially more severe actions like termination of the franchise agreement.