When is the Development Fee for Aira Fitness considered fully earned by the Franchisor?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ditional franchise agreement, you will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Ten Thousand Dollars ($10,000) for the second or greater than Eight Thousand Dollars ($8,000.00) for the third or other multiple Franchise Agreements above two.
2.2 Upon the execution of this Development Agreement, you shall pay a fee ("Development Fee") in the amount of Six Thousand Dollars ($6,000.00) times the number of additional Aira Fitness Center to be developed after the one for which Developer is signing a Franchise Agreement contemporaneously with this Development Agreement. The Development Fee is consideration for this Development Agreement, is fully earned by Franchisor upon execution of this Development Agreement and is non-refundable, notwithstand
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the Development Fee is considered fully earned by the franchisor upon the execution of the Development Agreement. The Development Fee compensates Aira Fitness for granting the developer the rights and obligations outlined in the Development Agreement.
Specifically, the Development Fee is calculated as Six Thousand Dollars ($6,000.00) multiplied by the number of additional Aira Fitness centers the developer commits to developing beyond the initial franchise. This fee is non-refundable, regardless of any conflicting provisions in any Franchise Agreement.
However, Aira Fitness will credit Six Thousand Dollars ($6,000.00) of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement for an Aira Fitness Center executed according to the Development Agreement. This credit effectively reduces the initial franchise fee for each subsequent location, incentivizing the developer to fulfill their development obligations.