What is the assumption regarding the general manager's salary in the lower estimate of working capital for an Aira Fitness business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
The figures in the chart represent the estimated amount of working capital you will need to cover other initial operating expenses for a period of 3 months.
The estimate covers utilities, website, email and internet expenses, phone, the monthly paymentforthe Gymmaster software.
The higher estimate includes salary for a trainer.
The lower estimate assumes that your Principal will be the general manager, as Aira Fitness Businesses are generally small, owner-operated gyms where the owner leads personal training and fitness classes.
No amount is included for owner's draw or salary or for salary for a general manager.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FITNESS CENTER LOCATION (FDD pages 24–31)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the lower estimate for working capital assumes that the franchise owner (Principal) will act as the general manager. This assumption is based on the understanding that Aira Fitness businesses are typically small, owner-operated gyms where the owner is actively involved in personal training and fitness classes. Consequently, the lower estimate does not include any amount for the owner's draw, salary, or a general manager's salary. This means that the initial investment required to start the business could be lower if the owner is willing and able to fulfill the duties of the general manager.
This assumption has significant implications for prospective franchisees. If an owner plans to hire a general manager from the outset, they should use the higher working capital estimate, which includes a salary for a trainer. If the owner intends to manage the gym themselves, they should be prepared to dedicate a significant amount of time to the business, leading personal training, and fitness classes. This hands-on approach may reduce initial costs but requires the owner to possess the necessary skills and time commitment.
It is important for potential Aira Fitness franchisees to carefully consider their personal circumstances and business plans when evaluating the estimated initial investment. If the owner's intention is to be actively involved in the day-to-day operations of the gym, the lower estimate may be appropriate. However, if the owner plans to take a more passive role or hire a general manager, the higher estimate will provide a more accurate picture of the initial investment required. Franchisees should discuss these assumptions with Aira Fitness and a business advisor to determine the most suitable financial plan for their individual situation.