Does Aira Fitness currently operate a National Marketing Fund?

National Marketing Fund*

As of the date of this Disclosure Document, we do not yet operate and manage a National Marketing Fund (the "Marketing Fund")to advertise and promote Aira Fitness Businesses in the System. However, we plan to establish a National Marketing Fund in the future. Once we establish the National Marketing Fund, you will pay us the monthly National Marketing Fee. We will deposit the National Marketing Fee in the Marketing Fund which is part of our general account. We may use the Marketing Fund to conduct national, regional and local advertising, marketing, promotional and public relations campaigns, including the cost of: (i) preparing and conducting print, point-of-sale, radio, television, internet, electronic, out-of-home, and billboard advertising; (ii) conducting e-commerce website activities; (iii) updating and hosting a website (including the development of locator programs); (iv) providing market intelligence through analytics to the System; (v) conducting member interviews,focus groups and surveys; (vi) providing creative development services including the development and modification of Aira FitnessBusiness design and trade dress, logos, graphics and vehiclewraps;(vii) obtainingsponsorships andendorsements;(viii) developingand conducting contests, sweepstakes and other prize promotions; (ix) developing and administering member loyalty programs, coupons and gift certificates;(x) engagingadvertisingand marketingagencies andpublic relations firms; and (xi) any other expenses for developing and promoting the brand or System. We also may use the Marketing Fund to develop advertising and promotional materials for regional and local advertising and marketing cooperatives and for use in each franchisee's local market. In certain markets, we may assist a franchisee with its initial advertising and promotional activities to increase brand awareness. We may have an in-house marketingorwe may contractwith variousoutside advertisingand marketingagencies andthird party vendors to produce certain advertising and promotional materials and to create and implement public relations campaigns.We willdetermine the useof the moniesin the MarketingFund.We may be reimbursed for reasonable administrative costs,salaries and overhead incurred in administering or providing services to the Marketing Fund.

We are not required to spend any particular amount of the Marketing Fund on marketing, advertising or production in the area in which your Aira FitnessBusiness is located. National Marketing Fees notspent in any fiscal year will be carried over for future use. We may make loans to the Marketing Fund bearing reasonable interest to cover any deficit of the Marketing Fund and cause the Marketing Fund to invest in a surplus for future use by the Marketing Fund. National Marketing Fees will not be used for advertising principally directed at the sale of franchises, provided our general marketing materials may reference franchise sales available. At your written request, we will provide you with an annual unaudited statement of the receipts and disbursements of the Marketing Fund.

All Aira Fitness franchisees are required to pay the National Marketing Fee, provided the amount of the National Marketing Fee may vary depending on the National Marketing Fee amount in effect at the time the franchisee signed a franchise agreement. Company or affiliate owned Aira Fitness Businesses will not contribute to the Marketing Fund.

Local Marketing Fund or Cooperative

We have the right to designate, as we deem appropriate, any geographical 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 byitsmembers ("Cooperative"). If a LocalMarketingFund orCooperativeis establishedin your market, you will be required to participate and contribute.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 38–43)