What is the definition of 'Memberships' in the context of an Aira Fitness franchise?

According to the 2025 Aira Fitness Franchise Disclosure Document, 'Memberships' refer to the membership contracts that a franchisee enters into with individuals, granting them access to the Aira Fitness Business facilities. These contracts are a critical part of the Aira Fitness business model, as they provide a recurring revenue stream for the franchisee. Aira Fitness requires franchisees to use a standard form of Membership Agreement, although franchisees may need to alter the agreement to comply with state and local laws. Any changes to the agreement must be approved in writing by Aira Fitness.

The Membership Agreements must include a reciprocity provision, allowing members to use other Aira Fitness facilities, and a waiver and release of Aira Fitness and its affiliates. They must also include a requirement for members to pay a yearly maintenance fee in addition to ongoing fees, and a statement identifying the Aira Fitness Business as an independently-owned franchised location. All Membership Agreements and billings must be processed through an approved technology system. Aira Fitness retains the right to prohibit or cancel memberships that extend beyond the term of the franchise agreement, and the franchisee is responsible for any refunds or liabilities resulting from such cancellations.

Furthermore, Aira Fitness requires franchisees to execute a Membership Contract Assignment Agreement, which allows Aira Fitness to take over the membership contracts in the event of the franchise agreement's expiration or termination. This ensures continuity and stability for the Aira Fitness Business. Franchisees must also maintain a minimum membership requirement, starting one year after opening, to ensure the financial viability of their Aira Fitness Business. Specifically, franchisees must maintain at least 150 members. Failure to meet this requirement for two consecutive months may result in additional training or on-site assistance, at the franchisee's expense.