What accounting standards must an Aira Fitness franchisee use when maintaining their books of account?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Accounting and Record Keeping.Franchisee shall use the bookkeeping, accounting, and record keeping system prescribed by us and submit to us such periodic reports, forms, and records as specified, and in the manner and at the time specified, in the Operations Manual. To ensure uniform financial statements are submitted by you, we reserve the right to require you to use a standard Chart of Accounts for tracking income and expense items for the Aira Fitness Business and the right to require you to have a fiscal year-end of December 31. For a period of five (5) years from their date of preparation, you will keep on file at your principal office and make available to the us all such records, including, without limitation, the following: receipts, invoices, payroll records, check stubs, bank deposit receipts, sales tax records and returns, business and personal tax returns, and such journals and transactions which properly summarize the transactions of the business operations of the Aira Fitness Business. You hereby grant permission to us to have access to all electronic records maintained in Technology Systems that we require you to use.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must adhere to the bookkeeping, accounting, and record-keeping system that Aira Fitness prescribes. This includes submitting periodic reports, forms, and records as specified in the Operations Manual, at the times and in the manner that Aira Fitness dictates. Aira Fitness retains the right to mandate a standard Chart of Accounts for tracking income and expense items related to the Aira Fitness Business. They can also require franchisees to have a fiscal year-end of December 31 to ensure uniform financial statements.
Franchisees are obligated to maintain all relevant records for a period of five years from their preparation date at their principal office. These records must be made available to Aira Fitness and include items such as receipts, invoices, payroll records, check stubs, bank deposit receipts, sales tax records and returns, business and personal tax returns, and journals summarizing business operations. Furthermore, franchisees grant Aira Fitness permission to access all electronic records maintained in the Technology Systems that Aira Fitness requires them to use.
These stipulations ensure that Aira Fitness can maintain a consistent and standardized financial reporting system across all franchise locations. This allows Aira Fitness to effectively monitor the financial performance of individual franchisees and the overall health of the franchise system. For a prospective franchisee, this means they must be prepared to adopt Aira Fitness's prescribed accounting methods and reporting schedules, potentially requiring them to adjust their existing accounting practices or invest in new software or training to comply with Aira Fitness's requirements. Failure to comply with these standards could result in penalties or other enforcement actions by Aira Fitness.