What is an Aira Fitness franchisee required to do regarding financial statements for Franchisor's Affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
10. REPORTING AND AUDIT RIGHTS
A. Accounting and Record Keeping.Franchisee shall use the bookkeeping, accounting, and record keeping system prescribed by us and submit to us such periodic reports, forms, and records as specified, and in the manner and at the time specified, in the Operations Manual. To ensure uniform financial statements are submitted by you, we reserve the right to require you to use a standard Chart of Accounts for tracking income and expense items for the Aira Fitness Business and the right to require you to have a fiscal year-end of December 31. For a period of five (5) years from their date of preparation, you will keep on file at your principal office and make available to the us all such records, including, without limitation, the following: receipts, invoices, payroll records, check stubs, bank deposit receipts, sales tax records and returns, business and personal tax returns, and such journals and transactions which properly summarize the transactions of the business operations of the Aira Fitness Business. You hereby grant permission to us to have access to all electronic records maintained in Technology Systems that we require you to use.
- 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 are required to adhere to specific accounting and reporting standards. Aira Fitness mandates that franchisees use a prescribed bookkeeping, accounting, and record-keeping system and submit periodic reports, forms, and records as detailed in the Operations Manual. To ensure uniform financial reporting, Aira Fitness reserves the right to require franchisees to use a standard Chart of Accounts for tracking income and expense items and to maintain a fiscal year-end of December 31. Franchisees must maintain all relevant records for five years at their principal office, including receipts, invoices, payroll records, tax returns, and bank deposit records, and grant Aira Fitness access to electronic records within required Technology Systems.
Each month, Aira Fitness franchisees must furnish a report of the Gross Sales of their Aira Fitness Business for the preceding calendar month. Additionally, franchisees must provide, upon request, monthly profit and loss statements and balance sheets, calendar year-end balance sheets, annual profit and loss statements, all sales and income tax returns, membership reports, and any other reports Aira Fitness may require. All reports submitted must be verified and signed by the franchisee.
Failure to report monthly 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. These measures ensure that Aira Fitness can maintain financial oversight and consistency across all franchise locations, while also protecting its revenue streams. Prospective franchisees should carefully review the Operations Manual and reporting requirements to fully understand their obligations.