What is the Aira Fitness franchisee's obligation regarding the monthly rent payment for the leased equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e.
(g) On the Effective Date, Franchisee shall pay to Franchisor a nonrefundable deposit equal to ("Nonrefundable Deposit Amount"). (h) Total MSRP of all Equipment: ("Total MSRP"). (i) Amount of monthly rent: (equal to 1.5% of Total MSRP). (j) delivery fee equal to: ("Delivery Fee"). On the Effective Date, Franchisee shall pay to Franchisor's Affiliate a nonrefundable
2. Lease.
- (a) Franchisor's Affiliate hereby agrees to lease to Franchisee and Franchisee hereby agrees to lease from Franchisor's Affiliate, subject to the terms of this Fitness Equipment Lease Agreement (the "Fitness Equipment Lease"), the personal property (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Equipment") described in any Schedule to Equipment Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Equipment Lease by reference therein (the "Lease").
- (b) The Equipment is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Equipment, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- 3. Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Equipment the amount described in Paragraph 1(h) above on the 1st day of each month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, a franchisee is obligated to pay monthly rent for the use of leased equipment. The amount of this rent is detailed in Paragraph 1(h) of the Fitness Equipment Lease Agreement. This payment is due on the 1st day of each month, following the Commencement Date.
If the Aira Fitness franchisee fails to make the rental payment within five days of the due date, they will incur a late fee. This late fee is calculated as the greater of $100.00 or 18% of the unpaid amount. However, the late fee will not exceed the maximum lawful charges. The franchise agreement emphasizes that timely payment of rent is critical.
This clause ensures that Aira Fitness franchisees understand their financial obligations regarding leased equipment. It also protects the franchisor's affiliate by providing a mechanism to recoup losses from late payments. Prospective franchisees should carefully review Paragraph 1(h) of the Fitness Equipment Lease Agreement to fully understand the monthly rental amount and potential late fee charges.