When is an Aira Fitness franchisee required to furnish a report of Gross Sales?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- B.
Reporting**.** You shall furnish to us on the first day of each calendar month a report of the Gross Sales of the Aira Fitness Business for the preceding calendar month in the manner we designate which may occur through required software programs.
You will furnish to us at our request the following reports in the manner and the time we designate: monthly profit and loss statement and balance sheet; calendar year-end balance sheet and an annual profit and loss statement for the calendar year reflecting all year-end adjustments; all state and local sales tax returns and all federal, state and local income tax returns; reports on membership; and such other reports as we may require from time to time.
You must verify and sign all reports submitted to us.
If you fail to report your monthly Gross Sales on a timely basis, we may estimate your Gross Sales; we may then withdraw any unpaid Royalties, National Marketing fees or other amount due by use of our Approved Payment Processor.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must furnish a report of Gross Sales to Aira Fitness on the first day of each calendar month. This report must detail the Gross Sales of the Aira Fitness Business for the preceding calendar month and must be submitted in the manner designated by Aira Fitness, potentially through required software programs.
This monthly reporting requirement is a standard practice in franchising, allowing Aira Fitness to monitor the financial performance of its franchise locations and calculate royalties and other fees accurately. Franchisees should ensure they have systems in place to track and report Gross Sales diligently to avoid potential penalties or audits.
Failure to report Gross Sales on time may result in Aira Fitness estimating the Gross Sales and withdrawing any unpaid royalties, national marketing fees, or other amounts due through the Approved Payment Processor. This highlights the importance of adhering to the reporting schedule to maintain a good standing with the franchisor and avoid financial repercussions.
Additionally, Aira Fitness has the right to audit a franchisee's business operations, records, and reports, excluding employment records, at any time without prior notice. If an audit reveals an understatement of Gross Sales, the franchisee is responsible for paying the owed royalties, national marketing fees, and other fees, along with interest and late fees, within ten days of receiving the audit report.