What does the amendment to the Aira Fitness Franchise Agreement state regarding the payment of initial franchise fees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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ADDENDUM TO THE AIRA FITNESS FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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- Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
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- Section 9.A of the Franchise Agreement on "Initial Franchise Fee" is amended by the addition of the following:
The Office of the Illinois Attorney General requires Franchisor to defer all initial franchise fees until such time as the Franchisor has completed all initial obligations owed to the Franchisee under the Franchise Agreement and the Franchisee has commenced doing business. This deferral of the initial franchise fees is required based on the Franchisor's financial condition.
Each of the undersigned hereby acknowledges having read and understood this Addendum and consents to be bound by all of its terms.
[Signature Page Follows]
AIRA FITNESS FRANCHISING LLC An Illinois limited liability company A Date: or if Franchisee is not an entity: Franchisee Date: Franchisee Prancinsee Date:
ADDENDUM TO THE AIRA FITNESS MULTI- UNIT DEVELOPMENT AGREEMENT FOR THE STATE OF ILLINOIS
| This Addendum in Franchising, LLC | s to the Multi-Unit Developm | nent Agreement dated(Developer) to ame | , 20between Aira Fitness nd said Agreement as follows: |
|---|---|---|---|
| 1. | its initial obligations to fra | se/Development Fees will be defeanchisee, and franchisee has comment was imposed by the Office ocial condition. | nmenced doing business. This |
| 2. | conformance with Section franchise agreement that de | anchise Agreement and Multi-Uni 4 of the Illinois Franchise Disclesignates jurisdiction and venue in r, a franchise agreement may provi | osure Act, any provision in a n a forum outside of the State |
| 3. | Your rights upon Terminat 19 and 20 of the Illinois F | tion and Non-Renewal of an agree | ement are set forth in sections |
| 4. | In conformance with section stipulation or provision pu | on 41 of the Illinois Franchise Durporting to bind any person acquis Franchise Disclosure Act or any | uiring any franchise to waive |
| 5. |
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, several amendments address the payment of initial franchise fees, often deferring payment until certain conditions are met. For franchisees in Illinois, the Office of the Illinois Attorney General mandates that Aira Fitness defer all initial franchise fees until Aira Fitness has fulfilled all initial obligations to the franchisee under the Franchise Agreement, and the franchisee has commenced business. This requirement is due to Aira Fitness's financial condition.
For franchisees in Virginia, the Virginia State Corporate Commission's Division of Securities and Retail Franchising requires Aira Fitness to defer payment of the initial franchise fee and other initial payments until Aira Fitness has completed its pre-opening obligations under the franchise agreement.
Generally, the standard Franchise Agreement is amended to state that payment of the initial franchise fee is deferred until the franchisee is open for business. For multi-unit development agreements, payment of the development fee is deferred until Aira Fitness has fulfilled its pre-opening obligations and the franchisee is open for business. Aira Fitness will not require or accept payment of any initial franchise fees until the franchisee has received all pre-opening and initial training and is open for business. The franchise fee will be released proportionally with respect to each franchise outlet opened, once Aira Fitness has met all pre-opening obligations and the franchisee is open for business at each location.