When must Aira Fitness franchisees charge their members a yearly maintenance fee?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
w us and our affiliates to collect the amounts owed to us. You are responsible for any penalties, fines or other similar expenses associated with the transfer of funds described in this Section.
- H. Yearly Maintenance Fees. You must charge your members a yearly maintenance fee in June of each calendar year. In consideration for the ongoing support and guidance we provide to our franchisees, you must pay to us fifty percent (50%) of the yearly maintenance fees collected from your members upon receipt of those fees. Suggested annual membership fees may be described in the Operations Manual from time to time. However, in no event will you pay us less than Nineteen Dollars and Fifty Cents ($19.50) per member, which mi
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 charge their members a yearly maintenance fee in June of each calendar year. Aira Fitness receives fifty percent of the collected yearly maintenance fees from members upon the franchisee's receipt of those fees. The FDD specifies that the minimum amount Aira Fitness will receive is $19.50 per member, which is subject to CPI adjustments as described in Section 9.E of the FDD. The franchisee must use the remaining portion of the yearly maintenance fees collected for the upkeep and maintenance of their Aira Fitness Business.
This requirement ensures that Aira Fitness franchisees have a dedicated revenue stream for maintaining the quality and standards of their facilities. By mandating the collection of a yearly maintenance fee in June, Aira Fitness aims to ensure consistent timing for revenue collection across all franchise locations. The franchisor's share of 50% helps support the ongoing support and guidance they provide to franchisees, while the minimum payment of $19.50 per member (subject to CPI adjustments) protects the franchisor's revenue against lower-priced membership models.
The franchisee's responsibility to use the remaining funds for maintenance underscores the importance Aira Fitness places on maintaining facility standards. This arrangement aligns the interests of both the franchisor and franchisee in providing a high-quality experience for members. The suggested annual membership fees may be described in the Operations Manual, which allows Aira Fitness to adjust the suggested fees periodically.
Prospective franchisees should carefully consider the implications of this yearly maintenance fee requirement, including the timing of collection, the franchisor's share, and the franchisee's obligation to use the remaining funds for maintenance. Understanding these details is crucial for accurately forecasting revenue and expenses and ensuring compliance with Aira Fitness's standards.