What factors can cause hourly wages to vary for an Ifly business?
Ifly Franchise · 2024 FDDAnswer from 2024 FDD Document
(3) "Selling, General, and Administrative" (SG&A) includes management salaries and hourly wages for flight instructors and other tunnel staff, commissions, bonuses, payroll tax, health insurance, and payroll fees. Also contained within SG&A are the costs for travel, uniforms, and customer flight gear. The amount of hourly labor necessary to operate an iFLY Business will vary but should scale consistently with the sales volume of the tunnel. Hourly wages may vary significantly by geographic location, the supply of and demand on the local labor pool, and state and federally mandated minimum wage laws.
Source: Item 19 — Financial Performance Representations (FDD pages 48–52)
What This Means (2024 FDD)
According to Ifly's 2024 Franchise Disclosure Document, several factors can influence the hourly wages paid at an Ifly franchise. These factors include the geographic location of the business, the local labor market's supply and demand dynamics, and any state or federally mandated minimum wage laws. These elements contribute to the overall 'Selling, General, and Administrative' (SG&A) expenses for the franchise.
For a prospective Ifly franchisee, this means that labor costs can vary significantly depending on where the franchise is located. Areas with higher costs of living or strong labor demand may require higher wages to attract and retain qualified staff, such as flight instructors and other tunnel personnel. Franchisees need to research the specific wage conditions in their area to accurately forecast their operating expenses.
It's important for potential Ifly franchisees to consider these variables when developing their financial performance models. Understanding the local labor market and wage regulations is crucial for managing costs and ensuring profitability. Franchisees should consult with local business advisors and conduct thorough market research to assess the potential impact of these factors on their business.