Under what circumstances will Fly To Fit charge a 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, a non-compliance fee may be charged to a franchisee under specific circumstances related to adherence to the System Standards and the Franchise Agreement. Fly To Fit may impose a $500 fee for each instance a franchisee fails to comply with the System Standards or the Franchise Agreement.
This fee is applicable only if the franchisee fails to correct the non-compliance within 30 days after receiving notice from Fly To Fit. If the non-compliance continues beyond this initial 30-day period, Fly To Fit may then charge an additional $250 per week until the franchisee rectifies the issue.
The document clarifies that this non-compliance fee is designed to cover Fly To Fit's internal costs associated with addressing the non-compliance, particularly the personnel time involved. It is explicitly stated that the fee is not a penalty, nor is it an exhaustive estimate of all potential damages resulting from the franchisee's breach. Furthermore, the non-compliance fee is in addition to any other legal rights and remedies available to Fly To Fit, including the possibility of default and termination of the Franchise Agreement.