For each Aira Fitness Center developed in the Development Area, what is required to be executed and what fee is required to be paid?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Aira Fitness Center developed in the Development Area, a separate Franchise Agreement shall be executed and the individual franchise fee as prescribed hereunder shall be paid to us. It is understood and agreed by you that any and all Franchise Agreements executed in connection with Aira Fitness Centers developed by you within the Development Area under this Agreement are independent of this Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Agreement. If any conflict shall arise in connection with this Agreement and any Franchise Agreement executed within the Development Area, the Franchise Agreement shall have precedence and superiority over this Agreement.
2.1 Concurrent with the execution of this Agreement, you must execute a Franchise Agreement for the first Aira Fitness Center to be developed and pay the initial franchise fee of Thirty Thousand Dollars ($30,000.00) due under said Franchise Agreement. The initial franchise fee for the second Franchise Agreements shall be Ten Thousand Dollars ($10,000.00) on the condition that, at the time you sign any additional Franchise Agreement under this Agreement, you are currently in compliance with the Development Schedule. The initial franchise fee for the third or other multiple Franchise Agreements above two shall be
Eight Thousand Dollars ($8,000.00) on the condition that, at the time you sign any additional Franchise Agreement under this Agreement, you are currently in compliance with the Development Schedule. If you are not in compliance with the Development Schedule at the time of signing any additional franchise agreement, you will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Ten Thousand Dollars ($10,000) for the second or greater than Eight Thousand Dollars ($8,000.00) for the third or other multiple Franchise Agreements above two.
2.2 Upon the execution of this Development Agreement, you shall pay a fee ("Development Fee") in the amount of Six Thousand Dollars ($6,000.00) times the number of additional Aira Fitness Center to be developed after the one for which Developer is signing a Franchise Agreement contemporaneously with this Development Agreement. The Development Fee is consideration for this Development Agreement, is fully earned by Franchisor upon execution of this Development Agreement and is non-refundable, notwithstanding any provision to the contrary contained in any Franchise Agreement. However, we will credit Six Thousand Dollars ($6,000.00) of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement for a Aira Fitness Center executed pursuant to, and in accordance with, this
By giving us written notice of your intention to begin development of the next Aira Fitness Center at least thirty (30) days before the execution of the Franchise Agreement for the applicable center;
By submitting to us a description of the proposed site, together with a letter of intent in a form approved by us or other evidence satisfactory to us which confirms your favorable prospects for obtaining the proposed site;
By executing the then-current form of the Franchise Agreement for the applicable center at the approved site and complying with its terms. We acknowledge that the franchisee for each Franchise Agreement may be a separate entity owned by your Owners.
- (d) By executing a lease, in a form approved by us, or purchase agreement for the proposed site; and
- (e) By meeting all of the requirements for developing and opening the Aira Fitness Center under the terms of the applicable Franchise Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, for each Aira Fitness Center developed within the Development Area, a separate Franchise Agreement must be executed. Additionally, the individual franchise fee as prescribed under the agreement must be paid to Aira Fitness. The Franchise Agreements are independent of the Development Agreement, meaning their existence doesn't depend on the Development Agreement's continuation. In case of any conflict between the Development Agreement and any Franchise Agreement executed within the Development Area, the Franchise Agreement takes precedence.
Prior to executing the Franchise Agreement for each Aira Fitness Center, the developer must provide written notice of their intention to begin development at least thirty (30) days in advance. They must also submit a description of the proposed site, along with a letter of intent or other satisfactory evidence confirming favorable prospects for obtaining the site. Furthermore, the developer is required to execute a lease or purchase agreement for the proposed site in a form approved by Aira Fitness and meet all requirements for developing and opening the Aira Fitness Center as outlined in the Franchise Agreement.
The initial franchise fee for the first Aira Fitness Center is Thirty Thousand Dollars ($30,000.00). For the second Aira Fitness Center, the initial franchise fee is Ten Thousand Dollars ($10,000.00), provided the developer is in compliance with the Development Schedule at the time of signing the additional Franchise Agreement. If the developer is not in compliance with the Development Schedule, they will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Ten Thousand Dollars ($10,000). The initial franchise fee for the third or other multiple Franchise Agreements above two shall be Eight Thousand Dollars ($8,000.00) on the condition that, at the time you sign any additional Franchise Agreement under this Agreement, you are currently in compliance with the Development Schedule. If you are not in compliance with the Development Schedule at the time of signing any additional franchise agreement, you will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Eight Thousand Dollars ($8,000.00) for the third or other multiple Franchise Agreements above two.
Additionally, upon the execution of the Development Agreement, the developer pays a Development Fee of Six Thousand Dollars ($6,000.00) times the number of additional Aira Fitness Centers to be developed after the first one. This Development Fee is consideration for the Development Agreement and is fully earned by Aira Fitness upon execution, being non-refundable. However, Aira Fitness will credit Six Thousand Dollars ($6,000.00) of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement for an Aira Fitness Center executed pursuant to the Development Agreement.