Is the initial franchise fee for Ifly refundable?

According to Ifly's 2024 Franchise Disclosure Document, the initial franchise fee is not refundable. The initial franchise fee is a lump sum of $25,000, which must be paid when signing the Franchise Agreement. This fee is imposed uniformly on all franchisees.

In addition to the initial franchise fee, Ifly franchisees must purchase a vertical wind tunnel from SkyVenture. The purchase price ranges from approximately $2,750,000 to $5,000,000, depending on the size and model chosen, as well as various options. This purchase price is also non-refundable. Franchisees also have the option to purchase a spare parts package, which ranges in price from $26,000 to $366,000.

The non-refundable nature of the initial franchise fee is a fairly standard practice in franchising. This fee compensates Ifly for the initial costs it incurs in granting the franchise, such as evaluating the franchisee, providing initial training, and setting up the franchisee with the necessary systems and resources. Prospective franchisees should be aware of this non-refundable fee and carefully consider their decision before signing the Franchise Agreement.