How is the Development Fee credited towards the Initial Franchise Fee for Aira Fitness?
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, notwithstanding any provision to the contrary contained in any Franchise Agreement.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, when a developer signs a Development Agreement, they must pay a Development Fee of $6,000 for each additional Aira Fitness Center to be developed beyond the first one. This fee compensates Aira Fitness for granting the development rights. While the Development Fee is non-refundable once paid, Aira Fitness will credit $6,000 of the Development Fee towards the Initial Franchise Fee for each additional Aira Fitness Center, provided the Franchise Agreement is executed according to the Development Agreement.
For example, if a developer plans to open three Aira Fitness locations, they would sign a Development Agreement alongside the Franchise Agreement for the first location. The Development Fee would be $12,000 ($6,000 for each of the two additional locations). When the developer executes the Franchise Agreements for the second and third locations, $6,000 will be credited towards each of those Initial Franchise Fees.
This credit mechanism reduces the overall financial burden on developers as they expand their Aira Fitness footprint. It incentivizes them to adhere to the Development Schedule outlined in their agreement. However, it's important to note that the initial franchise fee for the first Aira Fitness Center is $30,000 and is due upon signing the first Franchise Agreement. The initial franchise fee for the second Franchise Agreement is $10,000, and for the third and subsequent Franchise Agreements, the initial franchise fee is $8,000, provided the developer is in compliance with the Development Schedule. If not in compliance, the initial franchise fee will be the then-current fee charged to new franchisees if it is greater than $10,000 for the second or greater than $8,000 for the third or other multiple Franchise Agreements above two.