What expenses are included in the estimated working capital for the first 3 months of operating an Aira Fitness business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (13) The figures in the chart represent the estimated amount of working capital you will need to cover other initial operating expenses for a period of 3 months. The estimate covers utilities, website, e-mail and internet expenses, phone, the monthly payment for the Gymmaster software. The higher estimate includes salary for a trainer. The lower estimate assumes that your Principal will be the general manager, as Aira Fitness Businesses are generally small, owner-operated gyms where the owner leads personal training and fitness classes. No amount is included for owner's draw or salary or for salary for a general manager.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT FITNESS CENTER LOCATION (FDD pages 24–31)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the estimated working capital for the first 3 months of operation includes several key expenses. These expenses cover utilities, website, email and internet services, phone services, and the monthly payment for the Gymmaster software. The estimate may also include a salary for a trainer, depending on the operational model chosen.
Notably, the lower estimate for working capital assumes that the franchisee will act as the general manager, which is common for Aira Fitness businesses, as they are typically small, owner-operated gyms where the owner leads personal training and fitness classes. In this scenario, the estimate does not include an owner's draw or salary, nor does it include a salary for a general manager. This implies that the franchisee needs to be prepared to forgo a salary during the initial months if they choose to manage the gym themselves to minimize costs.
The FDD indicates that Aira Fitness compiled these estimates based on their affiliates' experience. However, the document advises prospective franchisees to carefully review these figures with a business advisor, as actual costs can vary significantly. Factors influencing these costs include adherence to the Aira Fitness system, the franchisee's management skills, local economic conditions, the local market for services, competition, and the sales level achieved during the initial period. Therefore, franchisees should conduct thorough local market research and consider these variables when planning their initial investment and working capital needs.
Additionally, franchisees should note the initial investment table which lists further estimated costs for the first three months. These include insurance ($1,000 to $2,000), training ($100 to $400), professional fees ($0 to $4,000), licenses, permits, and registrations ($300 to $500), security deposit and rent ($0 to $20,000), website fee ($594), and technology fee ($900).