Is the Development Fee for Aira Fitness refundable?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
y additional 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 generally non-refundable. Specifically, upon signing a Development Agreement, the franchisee must pay a Development Fee of $6,000 multiplied by the number of additional Aira Fitness Centers to be developed beyond the first one. This fee serves as consideration for the Development Agreement.
Despite its non-refundable nature, Aira Fitness offers a credit towards the Initial Franchise Fee. For each additional Franchise Agreement executed according to the Development Agreement, $6,000 of the Development Fee will be credited against the Initial Franchise Fee. This provides a financial incentive for franchisees to proceed with the development schedule outlined in their agreement.
It's important to note that this credit mechanism is contingent upon adhering to the Development Schedule. While the Development Fee itself is non-refundable, the credit applied to future franchise fees offers a potential benefit, provided the franchisee meets the obligations outlined in the Development Agreement with Aira Fitness.