After the first year of operation, what are the potential consequences if an Aira Fitness franchise fails to maintain the Minimum Membership Requirement for six 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, maintaining a minimum membership is crucial for the continuation of the franchise agreement. After the first year of operation, an Aira Fitness franchise is required to maintain at least 150 members, which is defined as the "Minimum Membership Requirement." Failing to meet this requirement for a sustained period can lead to significant consequences.
Specifically, if an Aira Fitness franchise fails to maintain the Minimum Membership Requirement for two consecutive months during its second year or thereafter, Aira Fitness has the option to (1) require the Principal and General Managers to attend additional training programs, or (2) provide on-site assistance and consultation, with all associated costs and expenses borne by the franchisee. This means the franchisee will have to pay for the extra training or consultation provided by Aira Fitness to help improve their membership numbers.
If the Aira Fitness franchise continues to underperform and does not meet the Minimum Membership Requirement for six consecutive months after the first year, Aira Fitness has the right to take more drastic action. In this case, Aira Fitness may eliminate the franchisee's territorial protection, which means the franchisee would no longer have an exclusive area, potentially leading to increased competition. Alternatively, Aira Fitness reserves the right to terminate the Franchise Agreement altogether, effectively ending the franchisee's right to operate an Aira Fitness business. Therefore, maintaining the minimum membership is critical to avoid losing territorial exclusivity or the entire franchise.