From whom must an Ifly franchisee purchase the wind tunnel?
Ifly Franchise · 2024 FDDAnswer from 2024 FDD Document
You must purchase your wind tunnel from SkyVenture, under the terms of the Equipment Purchase Agreement attached to this Disclosure Document as Exhibit C. The purchase price of the vertical wind tunnel equipment package (the "Purchase Price") varies depending on size and model chosen, as well as various options which can be included or excluded and ranges from approximately $2,750,000 to $5,000,000. The Purchase Price is paid in two installments: an initial down payment equal to 50% of the Purchase Price within 10 days of signing the Purchase Agreement and a final installment equal to the balance of the Purchase Price, in addition to the Systems Setup Fee (described below), when SkyVenture tenders the wind tunnel to you and before shipment or pickup. No part of the Purchase Price is refundable. There is an optional (but recommended) spare parts package which ranges in price from $26,000 to $366,000.
Source: Item 5 — Initial Fees (FDD pages 10–12)
What This Means (2024 FDD)
According to Ifly's 2024 Franchise Disclosure Document, franchisees are required to purchase their wind tunnel from SkyVenture. The specific terms of this purchase are detailed in the Equipment Purchase Agreement, which is included as Exhibit C in the FDD.
The cost of the wind tunnel equipment package can vary significantly, ranging from approximately $2,750,000 to $5,000,000, depending on the size and model selected, as well as any additional options chosen. This substantial investment is paid in two installments. The first installment is a down payment equal to 50% of the total purchase price, due within 10 days of signing the Purchase Agreement. The remaining balance, along with a Systems Setup Fee, is due when SkyVenture tenders the wind tunnel, before it is shipped or picked up by the franchisee.
In addition to the wind tunnel itself, Ifly franchisees have the option to purchase a spare parts package, which ranges in price from $26,000 to $366,000. While this spare parts package is optional, Ifly recommends that franchisees purchase it. It is important to note that no portion of the Purchase Price for the wind tunnel is refundable, highlighting the need for careful consideration and due diligence before making this significant investment.