How is the Development Fee for Aira Fitness calculated when signing a 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 establish. 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 fee is non-refundable.
The initial franchise fee structure for multi-unit developers is tiered. The initial franchise fee for the first Aira Fitness franchise is $30,000, paid when signing the Franchise Agreement. The franchise fee for the second franchise is $10,000. For each additional franchise after the second, the franchise fee is $8,000. When the franchisee signs the Franchise Agreement for these additional franchises, $6,000 of the Development Fee is credited towards the initial franchise fee. This means the franchisee will pay a balance of $4,000 for the second franchise and $2,000 for each subsequent franchise.
It's important to note that the Development Fee is uniform for all developers, meaning Aira Fitness does not offer discounts or negotiate this fee. However, 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 have increased since the agreement was signed. This condition underscores the importance of adhering to the agreed-upon development timeline to avoid potential cost increases.