What are the Aira Fitness franchisee's obligations regarding designated suppliers in Item 8, and how do these obligations impact the estimated initial investment in Item 7?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase member management software, key cards for 24/7 access, flooring and turf, decals/stickers,exteriorsignage,fitness equipment, Pods, andbillingand collection services fromsuppliers we designate. Currently, our affiliate Pure Gym Equipment LLC is the only designated supplier for the decals/stickers, Initial Fitness Equipment Package, Pod Package, and all signage.
You must purchase fixtures,furniture, equipment, computer hardware, insurance, the video surveillance system, marketing materials, other products and supplies from approved suppliers and/or that meet our standards and specifications.
Except for the decals/stickers, fitness equipment, Pods, and exterior signage, neither we nor our affiliates currently are designated or approved suppliers for any products or services. Except for Pure Gym Equipment LLC, none of our officers hold an interest in any of our suppliers.
We will provide youwith a listof approved manufacturers, suppliers anddistributors("ApprovedSuppliers List") and approved equipment, signs, stationery,supplies and other items or services necessary to operate the Aira Fitness Business ("Approved Supplies List"). From time to time we, an affiliate or a third party vendor or supplier, may be the only approved supplier for certain products. The Supplies List also may include other specific products without reference to a particular manufacturer, or they may designate the specifications and/or standards for other approved products. We may revise the Approved Suppliers List and Approved Supplies List from time to time. We give you the approved lists as we deem advisable.
Except for instances where we designate a single source supplier, if you wish to purchase any products or services for which we have established approved suppliers from an unapproved supplier, you may request our consent in writing. If we request, you mustsubmitsamples and other information as we require for testing or to otherwise determine whether the product, material or supply, or the proposed supplier meets
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees are required to purchase specific items from designated or approved suppliers. Specifically, franchisees must purchase member management software, key cards for 24/7 access, flooring and turf, decals/stickers, exterior signage, fitness equipment, Pods, and billing and collection services from suppliers designated by Aira Fitness. Currently, Pure Gym Equipment LLC, an affiliate of Aira Fitness, is the only designated supplier for decals/stickers, the Initial Fitness Equipment Package, the Pod Package, and all signage.
For other items such as fixtures, furniture, equipment, computer hardware, insurance, the video surveillance system, and marketing materials, franchisees must purchase from approved suppliers or ensure that the products meet Aira Fitness's standards and specifications. Aira Fitness will provide franchisees with a list of approved manufacturers, suppliers, and distributors, as well as a list of approved equipment, signs, stationery, supplies, and other necessary items. Aira Fitness retains the right to revise these lists periodically and may designate a single source supplier for certain products.
If a franchisee wishes to purchase products or services from an unapproved supplier for which Aira Fitness has established approved suppliers, they must obtain written consent from Aira Fitness. Aira Fitness may request samples and other information to determine if the proposed product or supplier meets their standards. Aira Fitness estimates that required purchases will represent approximately 75% to 85% of the franchisee's total purchases in connection with establishing the franchised business (excluding the franchise fee and other non-goods expenditures), and 5% to 10% of the ongoing costs to operate the business (excluding franchise fees and royalties and other non-goods expenditures).
The FDD indicates that Aira Fitness or its affiliates may receive rebates from franchisee purchases or leases from certain suppliers. While they do not currently receive rebates, they reserve the right to do so in the future. They also negotiate purchase arrangements for the benefit of franchisees, such as the Initial Fitness Equipment Package, but this does not guarantee lower prices than other products or services on the market. Item 7, which covers the estimated initial investment, would be directly impacted by these supplier obligations, as the costs for equipment, signage, and other required items would need to be factored into the total investment. Prospective franchisees should carefully review the Approved Suppliers List and Approved Supplies List to understand the potential costs and restrictions associated with these requirements.