Does the Aira Fitness Disclosure Document include a sample Multi-Unit Development Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
AIRA FITNESS FRANCHISING LLC ADDENDUM TO THE MULTI-UNIT DEVELOPMENT AGREEMENT FOR THE STATE OF NEW YORK
This Addendum is to an Multi-Unit Development Agreement between Aira Fitness Franchising, LLC and (Developer) to amend said Agreement as follows:
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- Paragraph 12.6 of the Multi-Unit Development Agreement on Governing Law/Consent to Jurisdiction shall be amended by the addition of the following language to the original language that appears therein:
- "The foregoing choice of law shall not be considered a waiver of any right conferred upon the Franchisee by the provisions of Article 33 of the General Business Law of the State of New York."
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on behalf of the Franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
In witness whereof, each of the undersigned hereby acknowledges having read this Addendum and understands and agrees to be bound by all of its terms as of the dates below.
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Initial Franchise Fee
The initialfranchise fee is $30,000. The initialfranchise fee is payable in fullwhenthe Franchise Agreement is signed, and is considered fully earned and nonrefundable upon payment.
In 2024, we did not sell any franchises for a fee different than the published initial franchise fee.
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Multi-Unit Development
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 described above.
Initial Fitness Equipment Package
[Item 7: ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FITNESS CENTER LOCATION]
Multi-Unit Development Agreement
If you sign a Multi-Unit Development Agreement, you should anticipate the initial costs listed in the chart above for the opening of the first Aira Fitness Business plus the Development Fee of $6,000 for the additional Aira Fitness franchises to be developed under the Multi-Unit Development Agreement after the first one, which will be applied to each initial franchise fee as described in Item 5.
For example, if you sign a Multi-Unit Development Agreement, you will pay us and our affiliates fees as follows:
[Item 17: **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP]
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE MULTI-UNIT DEVELOPMENT AGREEMENT FOR THE STATE OF NORTH DAKOTA
This Addendum is to a Multi-Unit Development Agreement dated by and between Aira Fitness Franchising, LLC and (Developer) to amend said Agreement as follows:
- Section 8 of the Multi-Unit Development Agreement on "Transferability; Entity as Developer" is amended by the addition of the following language to the original language that appears therein:
"The execution of a general release upon renewal, assignment or termination shall be inapplicable to franchises operating under the North Dakota Franchise Investment Law."
- Section 9 of the Multi-Unit Development Agreement on "Post-Termination Covenants" is amended by the addition of the following language to the original language that appears therein:
"Covenants not to compete such as those mentioned above are generally unenforceable in the State of North Dakota."
[Item 23: **RECEIPTS]
15. OWNER GUARANTY.
This Agreement must be personally guaranteed and the obligations hereunder assumed by all of the Owners of the Developer, and all such Owners must execute the Guaranty and Assumption of Obligations which is attached hereto as Exhibit C concurrently with the execution of this Agreement by Developer.
16. ACKNOWLEDGEMENTS
16.1 You and your Owners affirm that all information you have given to us in any and all applications, financial statements and other submissions is true, complete and accurate in all respects, with you expressly acknowledging that we are relying upon the truthfulness, completeness and accuracy of such information.
17. EXECUTION OF AGREEMENT.
This Agreement may be signed with full legal force and effect using electronic signatures and records. Delivery of this Agreement by facsimile, e-mail or other functionally equivalent electronic means of transmission constitutes valid and effective delivery.
IN WITNESS WHEREOF, the parties hereto have duly executed, sealed, and delivered this Agreement on the dates set forth below each signature.
DEVELOPER: AIRA FITNESS [ENTITY NAME] FRANCHISING LLC An Illinois limited liability Franchisor A Dated: Dated: AIRA FITNESS MUDA 2025 - 16 - FRANCHISOR INITIALS DEVELOPER INITIALS
EXHIBIT A TO THE MULTI-UNIT DEVELOPMENT AGREEMENT
DESCRIPTION OF DEVELOPMENT AREA
[Insert description]
FRANCHISOR: AIRA FITNESS FRANCHISING, LLC An Illinois limited liability Franchisor DEVELOPER: [ENTITY NAME] A Dated: Dated: AIRA FITNESS MUDA 2025 - 17 - DEVELOPER INITIALS FRANCHISOR INITIALS
EXHIBIT B TO THE MULTI-UNIT DEVELOPMENT AGREEMENT
DEVELOPMENT SCHEDULE
[Item 17: **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP]
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provisions of the Franchise Contract or Agreement if such provisions are in conflict with that law.
In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective as of the date below the signatures.
AIRA FITNESS FRANCHISING, LLC, an Illinois limited liability company [Insert individual name or company Its: Its:
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE MULTI-UNIT DEVELOPMENT AGREEMENT FOR THE STATE OF WISCONSIN
This Addendum is to a Multi-Unit Development Agreement between Aira Fitness Franchising, LLC and (Developer) to amend said Agreement by including the following language:
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provisions of the Franchise Contract or Agreement if such provisions are in conflict with that law.
In witness whereof, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms, and agrees it shall become effective as of the date below the signatures.
Source: Item 22 — **CONTRACTS (FDD page 59)
What This Means (2025 FDD)
The 2025 Aira Fitness Franchise Disclosure Document (FDD) does not contain a full sample Multi-Unit Development Agreement. However, it does include several references to the agreement and its exhibits. For instance, there are addenda to the Multi-Unit Development Agreement for specific states like New York, North Dakota, and Wisconsin, addressing legal considerations within those regions. These addenda modify specific sections of the agreement, such as governing law, transferability, and post-termination covenants, indicating the existence of such clauses within the original agreement.
Furthermore, the FDD mentions exhibits attached to the Multi-Unit Development Agreement, including Exhibit A (Description of Development Area), Exhibit B (Development Schedule), and Exhibit C (Owner Guaranty). These exhibits outline the scope of the development area, the timeline for opening multiple Aira Fitness centers, and the personal guarantees required from the developer's owners. The document also specifies that developers must sign the Franchise Agreement and pay the initial franchise fee for their first Aira Fitness franchise when signing the Multi-Unit Development Agreement.
Item 5 details the initial fees associated with a Multi-Unit Development Agreement. A developer pays a non-refundable Development Fee of $6,000 times the number of additional Aira Fitness businesses to be developed. This fee structure incentivizes multi-unit development while providing Aira Fitness with upfront capital. The franchise fee for the second franchise is $10,000, and for additional franchises after the second, it's $8,000. A portion of the Development Fee ($6,000) is credited against the initial franchise fee when signing the Franchise Agreement for subsequent locations.
While the FDD provides insights into the terms and conditions of the Multi-Unit Development Agreement through addenda, exhibits, and fee structures, it does not include the complete agreement as a sample document. A prospective franchisee should request a full sample agreement from Aira Fitness to fully understand all the obligations and responsibilities involved in a multi-unit development arrangement.