Is the contribution to the Local Marketing Fund or Cooperative for Aira Fitness franchises in addition to, or in lieu of, the National Marketing Fee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
y depict the Marks (any use of the Marks, or a new variation you propose to the Marks, without our prior written approval is prohibited).
C. Local Marketing Fund and Advertising Co-ops.
We may, at our option, designate any geographic area in which at least two AIRA FITNESS franchises are located as a "designated advertising area" for the purposes of establishing a local marketing fund that we control ("Local Marketing Fund") or local or regional advertising cooperative controlled by majority vote of its members ("Cooperative"), and may require you to make a contribution to a local marketing fund and/or a Cooperative, as provided in this paragraph. Any amount contributed to a Local Marketing Fund or Cooperative will be in addition to, and not in lieu of, the National Marketing Fee described above. We have the right to determine the amount of contribution, in our sole judgment, provided that aggregate monthly contributions will not exceed Two Hundred Dollars ($200) per month (subject to adjustment based on the CPI as provided in Section 9.E). If, however, a Cooperative chooses to contribute a greater amount and the amount is approved by a two-thirds majority of the members of the Cooperative, you must contribute such amount. Any contribution you make to a Local Marketing Fund or Cooperative will count towards the minimum local advertising expenditures outlined in Section 8.B.
If established, you must participate in any Local Marketing Fund and/or Cooperative formed to serve the geographic area in which the Aira Fitness Business is located, and must promptly execute all participation documents that we require. For Cooperatives only, each Aira Fitness Business in the Cooperative will have one vote. Each Cooperative will be required to adopt governing bylaws that meet our approval. We will provide each Cooperative with a sample form of bylaws, containing certain terms and conditions that we require, although the bylaws cannot modify the voting
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, contributions to a Local Marketing Fund or Cooperative are in addition to the National Marketing Fee. Aira Fitness, at its option, may designate a geographic area with at least two franchises as a "designated advertising area" to establish a Local Marketing Fund or Cooperative.
The document specifies that any amount contributed to a Local Marketing Fund or Cooperative will not replace the National Marketing Fee. Aira Fitness has the right to determine the contribution amount, but it cannot exceed $200 per month, although this amount is subject to Consumer Price Index (CPI) adjustments. However, if a Cooperative decides to contribute a greater amount, and it is approved by a two-thirds majority of its members, franchisees must contribute that higher amount.
Any contributions made to a Local Marketing Fund or Cooperative count toward the minimum local advertising expenditures, which are at least $4,800 annually. Franchisees must participate in any Local Marketing Fund or Cooperative established for their area and must execute all required participation documents. For Cooperatives, each Aira Fitness business has one vote, and the Cooperative must adopt governing bylaws that meet Aira Fitness's approval. Cooperatives must also submit meeting minutes to Aira Fitness upon request and obtain written approval for all promotional and advertising materials.