Does Fly To Fit have an obligation to collect payments from franchisees on behalf of vendors?

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 may also remit these payments to the vendor. Additionally, Fly To Fit has the option to impose a reasonable markup or charge for administering this payment program. This means that Fly To Fit is not required to act as a payment collector but can choose to do so.

This arrangement provides Fly To Fit with flexibility in managing vendor relationships and potentially generating additional revenue through markups or charges for administering payments. For a franchisee, this could mean simplified payment processes if Fly To Fit chooses to implement this system. However, it also introduces the possibility of additional costs if Fly To Fit decides to impose a markup for the service.

It is also important to note that Fly To Fit may negotiate prices and terms with vendors on behalf of the entire Fly To Fit system and may receive rebates, payments, or other consideration from vendors related to franchisee purchases. Fly To Fit also has the option to implement a centralized purchasing system or establish a purchasing cooperative that franchisees may be required to join.