When is the reimbursement fee due from a Fly To Fit franchisee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Reimbursement | Amount that we spend on your behalf, plus 10% | Within 15 days of invoice | If we pay any amount that you owe or are required to pay to a third party, you must reimburse us. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, if Fly To Fit pays an amount that a franchisee owes to a third party, the franchisee must reimburse Fly To Fit within 15 days of the invoice date. The reimbursement amount will be the amount Fly To Fit spent on the franchisee's behalf, plus an additional 10%.
This means that if Fly To Fit covers a franchisee's debt or obligation to someone else, the franchisee has a relatively short window to repay Fly To Fit. The 10% markup suggests that this is not merely a pass-through of costs, but also includes an administrative fee for Fly To Fit's trouble.
Prospective Fly To Fit franchisees should be aware of this reimbursement policy and ensure they have sufficient cash flow to cover any potential reimbursements within the 15-day timeframe. It would be prudent to inquire with Fly To Fit about the typical circumstances that might lead to such reimbursements to better anticipate and prepare for these situations.