What is the condition under which Aira Fitness will charge interest on amounts owed?

According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee's merchant account does not contain sufficient credit for all amounts due at the time of a debit, Aira Fitness is entitled to collect interest and late fees as provided in the Franchise Agreement. These fees can then be debited from the merchant account once sufficient funds are available to cover them.

This means that Aira Fitness franchisees must ensure they maintain adequate funds in their merchant accounts to cover all payments due to Aira Fitness, which may include royalty fees, national marketing fund contributions, website fees, and yearly maintenance fees. Failure to maintain sufficient funds can result in the accrual of interest and late fees, adding to the franchisee's financial obligations.

The authorization included in Attachment D of the Franchise Agreement allows Aira Fitness to initiate monthly debits for payments and apply credits to the merchant account. The specific dollar amount debited each month will vary based on the franchisee's obligations. Franchisees are responsible for any costs or fees charged by the Approved Payment Processor related to these debits. This system ensures that Aira Fitness can efficiently collect payments, but it also places the onus on the franchisee to manage their account balance carefully to avoid penalties.