What is the Aira Fitness franchisee's obligation regarding the monthly rent payment for the Pod?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
sequently executed by the parties hereto and incorporating the terms of this Pod Lease by reference therein (the "Lease").
- (b) The Pod 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 Pod, 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.
- Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Pod 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 due date thereof, Franchisee will pay on demand, as an additional late service and/or overhead charge, but not as interest, on amounts not paid when due, the greater of One Hundred Dollars ($100.00) or, in amount equal to eighteen percent (18%) of any such unpaid amount but in no event to exceed maximum lawful charges. TIME IS OF THE ESSENCE FOR THE PAYMENT OF RENT UNDER THIS PROVISION.
THIS LEASE IS NON-CANCELABLE FOR ITS ENTIRE TERM and Franchisee has no right of prepayment unless specifically granted to Franchisee in a written rider signed by the parties hereto. Upon expiration of the term of this Lease, and until return to Franchisor's Affiliate of the Pod and any and all other equipment leased hereunder, or until any purchase option price is paid, this Lease shall remain effective and shall become a month-to-month lease between the parties on the same terms and conditions, and the monthly rent then in effect shall be the rent payable during such month-to-month term under each applicable s
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 the Pod. The amount is detailed in Paragraph 1(h) of the Pod Lease Agreement. This payment is due on the 1st day of each month following the Commencement Date, which is upon delivery of the Pod.
If the franchisee fails to make the rental payment within five days of the due date, Aira Fitness will charge a late fee. This late fee will be the greater of $100 or 18% of the unpaid amount, but it will not exceed the maximum lawful charges. The FDD emphasizes that timely payment of rent is critical, stating, "TIME IS OF THE ESSENCE FOR THE PAYMENT OF RENT UNDER THIS PROVISION."
After the initial lease term expires, the lease converts to a month-to-month arrangement until the Pod is returned to Franchisor's Affiliate or the purchase option is exercised. The monthly rent during this month-to-month period will be the same as the rent in effect under the original lease terms. The franchisee also has the option to purchase the Pod for $20,000 under certain conditions, including providing written notice at least 30 days prior to exercising the option, not being in default under the lease, and paying all rent and other charges due.