Are the fixed fees under the Aira Fitness Franchise Agreement subject to CPI adjustments?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
sales price and collected from the customer and paid to the appropriate taxing authority; and (ii) any bona fide refunds and credits that are actually provided to customers.
- E. CPI Adjustment. All fixed fees (those not calculated as a percentage of sales) under this Agreement, including the Local Advertising expenditure and Local Marketing Fund or Cooperative contribution, are subject to adjustment based on any increase in the Consumer Price Index (meaning the annual average of the Consumer Price Index for All Urban Consumers, Other goods and services, 1982- 1984=100, published by the Bureau of Labor Statistics of the United States Department of Labor). If the Bureau of Labor Statistics ceases publishing the Consumer Price Index, then the successor or most nearly comparable index as we select will be used. Fees will be changed no more than once per year. The increase will be based on the increase in the Index from January 1 of any year to January 1, 2025 or the previous CPI adjustment. We will provide you with reasonable notice of such adjustment.
- F. Computations and Remittances.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, certain fixed fees are subject to Consumer Price Index (CPI) adjustments. These include the Local Advertising expenditure and Local Marketing Fund or Cooperative contribution. The CPI used is the annual average of the Consumer Price Index for All Urban Consumers, Other goods and services, 1982-1984=100, published by the Bureau of Labor Statistics of the United States Department of Labor. If this index is discontinued, Aira Fitness will select a successor or comparable index.
The adjustments to these fees will occur no more than once per year, with the increase based on the change in the index from January 1 of any year to January 1, 2025, or the date of the previous CPI adjustment. Aira Fitness is required to provide franchisees with reasonable notice of any such adjustment.
Additionally, the minimum amount of $19.50 per member that franchisees must pay to Aira Fitness from yearly maintenance fees collected is also subject to CPI adjustments, as described in Section 9.E of the agreement. This means that this minimum amount could increase over time based on changes in the CPI, affecting the franchisee's revenue from membership maintenance fees.