How is the Development Fee calculated for an Aira Fitness Multi-Unit Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
velopment
If you are a Developer, you mustsign the Franchise Agreement for your first Aira Fitness franchise and pay the initial franchise fee for the first franchise to be developed at the same time as you sign the Multi-Unit Development Agreement. In addition, you must pay a non-refundable Development Fee when you sign the Multi-Unit Development Agreement. The Development Fee is $6,000 times the number of additional Aira Fitness Businesses to be developed. The franchise fee for the second franchise will be $10,000. The franchise fee for the additional franchises after the second franchise will be $8,000.
When you sign the Franchise Agreement for the additional franchises, $6,000 of the Development Fee paid will be applied againstthe initial franchise fee for the franchise, and you will pay the balance due of $4,000 forthe second franchise and $2,000 for the additional franchises after the second franchise. For each franchise to be developed under the Multi-Unit Development Agreement, you will pay the initial franchise feesin the amount described in this Item 5 unless you fail to meet the Development Schedule in the Multi-Unit Development Agreement. If you failto meettheDevelopmentScheduleandthe then-currentinitialfranchisefeesforfranchises are higher than those described in this Franchise Disclosure Document, you must pay the then-current initial franchise fee.
The Development Fee is uniform for all Developers. The Development Fee is not refundable under any circumstances, but it is credited against additional franchise fees as descri
Source: Item 5 — INITIAL FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a Development Fee is required when signing a Multi-Unit Development Agreement. This fee is calculated by multiplying $6,000 by the number of additional Aira Fitness businesses the developer plans to open. This fee is non-refundable. For example, if a developer commits to opening five additional Aira Fitness locations, the Development Fee would be $30,000 (5 x $6,000). This is in addition to the initial franchise fee for the first location.
The initial franchise fee for the second franchise will be $10,000. The franchise fee for the additional franchises after the second franchise will be $8,000. When the franchisee signs the Franchise Agreement for each additional location, $6,000 of the Development Fee is credited toward the initial franchise fee. This means that for the second franchise, the franchisee will pay a balance of $4,000, and for each franchise after the second, they will pay a balance of $2,000.
It's important to note that if the developer fails to meet the development schedule outlined in the Multi-Unit Development Agreement, they may be required to pay the then-current initial franchise fees if those fees are higher than what is described in the Franchise Disclosure Document. The Development Fee is uniform for all Developers.