What costs are included when an Aira Fitness franchisee must reimburse the franchisor for the cost of an inspection or audit?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, if the audit is made necessary by your failure to furnish reports, financial statements, tax returns or schedules as herein required, or if an understatement of Gross Sales for any period is determined by any such inspection or audit to be greater than two percent (2%), you shall reimburse usfor the cost of such inspection or audit including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees or agents, and we shall have the right to require you to furnish, at your sole cost and expense, financial statements prepared by an independent certified public accountant thereafter.
In addition, you shall pay for all costs, as specified above, of the inspection and audit if your books and records are not produced at the time of the inspection and audit, provided that we notified you at least five (5) days prior to the scheduled inspection and audit date.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee may have to reimburse Aira Fitness for the cost of an inspection or audit under certain conditions. Specifically, if an audit reveals an understatement of Gross Sales greater than two percent (2%), the franchisee is responsible for covering the expenses associated with the audit.
The costs that Aira Fitness may charge back to the franchisee include the charges of attorneys and independent accountants. Additionally, the franchisee will have to cover the travel expenses, room and board, and compensation of Aira Fitness's employees or agents involved in the inspection or audit.
Furthermore, the franchisee is also responsible for covering all specified costs of the inspection and audit if their books and records are not produced at the time of the inspection and audit, provided that Aira Fitness gave at least five (5) days prior notice of the scheduled inspection and audit date. This provision underscores the importance of maintaining accurate records and providing them promptly when requested to avoid incurring additional expenses.