factual

What condition regarding the Franchisor's obligations must be met before the initial franchise fee is due for an Aira Fitness franchise in Illinois?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

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, an addendum specific to Illinois addresses the payment of initial franchise fees. The initial franchise fee payment is deferred until Aira Fitness has fulfilled all of its initial obligations to the franchisee, as outlined in the Franchise Agreement. Additionally, the franchisee must have commenced business operations. This requirement was mandated by the Office of the Illinois Attorney General due to Aira Fitness's financial condition.

This deferral provides a financial assurance to franchisees in Illinois, ensuring that Aira Fitness completes its pre-opening responsibilities before receiving the initial franchise fee. These obligations typically include site selection assistance, training, and providing operational manuals. The franchisee's commencement of business serves as a secondary trigger, indicating readiness to operate the franchise.

This condition protects new Aira Fitness franchisees in Illinois by aligning the payment of the initial franchise fee with the franchisor's performance and the franchisee's ability to start generating revenue. Prospective franchisees should carefully review the Franchise Agreement to understand the specific obligations Aira Fitness must fulfill before the initial franchise fee becomes due. Franchisees should also confirm with Aira Fitness that all obligations have been met before remitting any payment.

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.