When is the base year for calculating the CPI adjustment for Aira Fitness?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
All fixed fees (those not calculated as a percentage of sales) under this Agreement, including the Local Advertising expenditure and Local Marketing Fund or Cooperative contribution, are subject to adjustment based on any increase in the Consumer Price Index (meaning the annual average of the Consumer Price Index for All Urban Consumers, Other goods and services, 1982- 1984=100, published by the Bureau of Labor Statistics of the United States Department of Labor).
If the Bureau of Labor Statistics ceases publishing the Consumer Price Index, then the successor or most nearly comparable index as we select will be used.
Fees will be changed no more than once per year.
The increase will be based on the increase in the Index from January 1 of any year to January 1, 2025 or the previous CPI adjustment.
We will provide you with reasonable notice of such adjustment.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, several fixed fees are subject to Consumer Price Index (CPI) adjustments. These fees include the Local Advertising expenditure and Local Marketing Fund or Cooperative contributions. The CPI used is the annual average of the Consumer Price Index for All Urban Consumers, Other goods and services, with a base period of 1982-1984=100, as published by the Bureau of Labor Statistics. If this index is discontinued, Aira Fitness will select a successor or comparable index.
The fees are adjusted no more than once per year, with the increase calculated based on the change in the CPI from January 1 of any year to January 1, 2025, or the date of the previous CPI adjustment. This means that 2025 serves as the base year for calculating increases to certain fixed fees.
Aira Fitness will provide franchisees with reasonable notice before implementing any CPI adjustments. This allows franchisees to anticipate and plan for changes in their fixed fee obligations, helping them manage their finances effectively. Franchisees should pay close attention to these notices to stay informed about potential adjustments to their fees.