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What is the 'Approved Supplies List' for Aira Fitness?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

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We will provide youwith a listof approved manufacturers, suppliers anddistributors("ApprovedSuppliers List") and approved equipment, signs, stationery,supplies and other items or services necessary to operate the Aira Fitness Business ("Approved Supplies List"). From time to time we, an affiliate or a third party vendor or supplier, may be the only approved supplier for certain products. The Supplies List also may include other specific products without reference to a particular manufacturer, or they may designate the specifications and/or standards for other approved products. We may revise the Approved Suppliers List and Approved Supplies List from time to time. We give you the approved lists as we deem advisable.

Except for instances where we designate a single source supplier, if you wish to purchase any products or services for which we have established approved suppliers from an unapproved supplier, you may request our consent in writing. If we request, you mustsubmitsamples and other information as we require for testing or to otherwise determine whether the product, material or supply, or the proposed supplier meets

our specifications and quality and safety standards. We generally will notify you of supplier approval or disapproval within 30 days of our receipt of all the information and samples we request. We currently do not charge for approval of alternative suppliers but reserve the right to do so in future. The supplier also may be required to sign a supplier agreement. We may re-inspect the facilities and products of any supplier of an approved supplier or item and revoke our approval of any supplier or item that fails to continue to meet any of our criteria. We will provide notice of any revocation by a detailed phone call or email.

We apply the following general criteria in approving a proposed supplier: (i) cost of product; (ii) quality of product (iii) ability to make product in conformity with our specifications.

Insurance

You must purchase insurance from an approved supplier and following the minimum requirements below.

Type of Insurance Minimum Amount
Commercial General Liability including Product $1,000,000 per occurrence;

Source: Item 8 — **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must adhere to an 'Approved Supplies List,' which details the approved equipment, signs, stationery, supplies, and other items or services necessary to operate the Aira Fitness business. Aira Fitness will provide franchisees with this list of approved manufacturers, suppliers, and distributors. The document states that the Approved Supplies List may include specific products without reference to a particular manufacturer, or it may designate the specifications and/or standards for other approved products. Aira Fitness retains the right to revise the Approved Suppliers List and Approved Supplies List as it deems advisable.

Prospective Aira Fitness franchisees should understand that Aira Fitness maintains control over the sources from which they obtain essential supplies and services. Except where Aira Fitness designates a single source supplier, franchisees have the option to request consent in writing to purchase products or services from an unapproved supplier. However, franchisees may need to submit samples and other information for testing to determine if the product, material, supply, or proposed supplier meets Aira Fitness's specifications, quality, and safety standards. Aira Fitness will generally notify the franchisee of supplier approval or disapproval within 30 days of receiving all the requested information and samples.

It's important to note that Aira Fitness may derive revenue or other material consideration from required franchisee purchases or leases. For instance, in the fiscal year ended December 31, 2024, Aira Fitness's affiliate, Pure Gym Equipment LLC, derived $87,808 from franchisee equipment purchases. The affiliate also charges a markup on the franchisee's purchase of the Initial Fitness Equipment Package. Franchisees should be aware of these financial arrangements and factor them into their cost analysis. Aira Fitness estimates that required purchases will represent approximately 75 to 85% of the total purchases in connection with establishing the franchised business (excluding the franchise fee and other non-goods expenditures), and 5 to 10% of the ongoing costs that franchisees will need to operate the business (excluding franchise fees and royalties and other non-goods expenditures).

In approving a proposed supplier, Aira Fitness applies general criteria such as the cost of the product, the quality of the product, and the ability to make the product in conformity with their specifications. Aira Fitness may re-inspect the facilities and products of any supplier of an approved supplier or item and revoke approval if the supplier or item fails to continue meeting their criteria. Franchisees will receive notice of any revocation via a detailed phone call or email. This system ensures that Aira Fitness maintains consistent standards across all franchise locations, but it also limits the franchisee's autonomy in sourcing supplies and potentially impacts their profit margins.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.