Does Fly To Fit have an obligation to collect payments from Franchisee on behalf of a vendor?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
Fly To Fit Franchise may negotiate prices and terms with vendors on behalf of the System.
Fly To Fit Franchise may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees.
Fly To Fit Franchise has the right (but not the obligation) to collect payments from Franchisee on behalf of a vendor and remit the payments to the vendor and to impose a reasonable markup or charge for administering the payment program.
Fly To Fit Franchise may implement a centralized purchasing system.
Fly To Fit Franchise may establish a purchasing cooperative and require Franchisee to join and participate in the purchasing cooperative on such terms and conditions as Fly To Fit Franchise may determine.
Source: Item 22 — CONTRACTS (FDD page 44)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, Fly To Fit has the right, but not the obligation, to collect payments from franchisees on behalf of a vendor. Fly To Fit can also remit these payments to the vendor. Additionally, Fly To Fit can impose a reasonable markup or charge for administering this payment program.
This means that Fly To Fit may choose to facilitate payments between franchisees and vendors, potentially streamlining the purchasing process. However, franchisees should be aware that Fly To Fit is not required to offer this service and may charge an additional fee for doing so.
Fly To Fit also retains the right to negotiate prices and terms with vendors on behalf of the entire Fly To Fit system. In connection with purchases by franchisees, Fly To Fit may receive rebates, payments, or other forms of consideration from vendors. Fly To Fit may also implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join.