Under what conditions will Fly To Fit charge a non-compliance fee?
Fly_To_Fit Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Non-compliance fee | $500 | On demand | We may charge you $500 if your business is not in compliance with our system specifications or the franchise agreement and you fail to correct the non-compliance after 30 days' notice. Thereafter, we may charge you $250 per week until you correct such non-compliance. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2024 FDD)
According to Fly To Fit's 2024 Franchise Disclosure Document, a franchisee may be charged a non-compliance fee under specific circumstances. Initially, Fly To Fit may charge $500 if the franchisee's business fails to comply with the system specifications or the franchise agreement.
This fee is not immediately assessed. Fly To Fit will provide the franchisee with a 30-day notice to correct the non-compliance. If the franchisee fails to rectify the issue within this 30-day period, the $500 fee will be charged.
Furthermore, the non-compliance fee does not stop at $500. If the franchisee continues to be non-compliant after the initial fee, Fly To Fit may charge an additional $250 per week until the franchisee corrects the non-compliance. This escalating fee structure is designed to incentivize franchisees to promptly address and resolve any issues of non-compliance with Fly To Fit's standards and agreements.