After the first year of operation, what are the potential consequences if an Aira Fitness franchise fails to maintain the Minimum Membership Requirement for two consecutive months?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Beginning on the one-year anniversary of opening for business, you must, at all times, have at least 150 members ("Minimum Membership Requirement"). If, during your second year of operation and thereafter, you do notmaintainthe Minimum MembershipRequirementfor 2 consecutivemonths, we may: (1) require your Principal and General Managers we determine to attend additional training programs; or (2) provide on-site assistance and consultation at your expense. If we provide any additional training, assistance or consultation, you must cover all costs and expensesfor such training, assistance or consultation. If, during your second year of operation and thereafter, you do not maintain the Minimum Membership Requirement for 6 consecutive months, we may eliminate your territorial protection or terminate the Franchise Agreement.
Source: Item 12 — **TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, after the first year of operation, franchisees must maintain a minimum of 150 members. This is called the "Minimum Membership Requirement". If an Aira Fitness franchise fails to meet this requirement for two consecutive months during its second year or later, Aira Fitness has the right to take certain actions.
Specifically, Aira Fitness may require the Principal and General Managers to attend additional training programs. Alternatively, Aira Fitness may provide on-site assistance and consultation to the franchise. Importantly, the franchisee is responsible for covering all costs and expenses associated with any additional training, assistance, or consultation provided by Aira Fitness.
Furthermore, if an Aira Fitness franchise fails to maintain the Minimum Membership Requirement for six consecutive months, Aira Fitness has the option to eliminate the franchisee's territorial protection or even terminate the Franchise Agreement entirely. This underscores the importance of maintaining membership levels to protect the franchise's territory and overall business operation.