IRF provides a management service agreement that offers a flat
rate or fee to benefit all parties in the most efficient way possible.
Each piece of exercise equipment will be provided to the hotel at a
monthly rate of $49. The rate is a full service rate that includes
insurance, finance, service, training, marketing, taxes, and warranty.
IRF will always keep your product up and running.
For accounting and reporting purposes the monthly fee should be booked as a service or maintenace fee, but also meets the criteria of an operating lease. IRF will remove all the headaches of ownership by providing the right piece of equipment and everything
associated with it without the hassle. This program minimizes bookkeeping efforts and budgeting and while improving balance sheet liquidity, AMT protection, overall reported earnings, and financial ratios and measurements.
As part of the agreement IRF provides equipment turnover at
regularly scheduled times. This ensures that all treadmills are
replaced every three years with the latest equipment. This will also
ensure that all treadmills are never without a warranty; IRF offers a
three-year warranty on equipment.
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