What form does the merchant account authorization for Aira Fitness take?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attachment D to the Franchise Agreement
MERCHANT ACCOUNT AUTHORIZATION
As a duly authorized signer on the Merchant Account, I authorize Aira Fitness Franchising, LLC ("Company") to initiate monthly Merchant Account debits for payments due or when applicable, apply Merchant Account credits to the same. Said debits may be for Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts Franchisee owes to the Company or its affiliates pursuant to the Franchise Agreement between Franchisee and Company, and in amounts required by the Franchise Agreement. The dollar amount to be debited for each debit will vary.
Currently, Company is initiating monthly debits on the first day of every calendar week for payment of the Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts then due, unless that day falls on a holiday, in which case the debit will be initiated the following business day. The dates and intervals for initiating debits for amounts due under the Franchise Agreement may be changed upon delivery of notice to Franchisee.
If, at the time of any debit, the Merchant Account does not contain sufficient credit for all amounts then due (Non-Sufficient or Uncollected Funds), I understand that Company shall be entitled to collect interest and late fees as provided in the Franchise Agreement, and to debit same from the Merchant Account once there are sufficient funds to cover it.
Franchisee is responsible for, and shall pay on demand, all costs or fee charged by the Approved Payment Processor holding the account relating to the handling of debits pursuant to this authorization. I understand and authorize all of the above.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness FDD, the merchant account authorization is provided as Attachment D to the Franchise Agreement. By signing this authorization, the franchisee allows Aira Fitness Franchising, LLC to initiate monthly debits from the franchisee's Merchant Account for various fees and payments owed to Aira Fitness or its affiliates. These potential debits include royalty fees, national marketing fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts due under the Franchise Agreement. The exact dollar amount of each debit will vary depending on what is owed.
The authorization allows Aira Fitness to debit payments on the first day of every calendar week, though this schedule can be changed with notice to the franchisee. If a debit attempt fails due to insufficient funds in the Merchant Account, Aira Fitness is entitled to collect interest and late fees, debiting these amounts when sufficient funds are available. The franchisee is responsible for covering any fees charged by the Approved Payment Processor related to these debit transactions.
This authorization ensures that Aira Fitness can collect the necessary fees to support the franchise system. The franchisee must maintain a sufficient balance in their Merchant Account to cover these deductions. Failing to do so can result in additional charges and potential penalties. This arrangement is typical in franchising, as it provides the franchisor with a reliable method for collecting ongoing fees, but it places a responsibility on the franchisee to manage their account balance carefully.