What are the Aira Fitness franchisee's obligations regarding the purchase of equipment in Item 8, and how does this relate to the franchisor's assistance with site selection in Item 11?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Before you open your Aira Fitness Business, we will:
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- Provide you with site selection criteria and general design requirements for your Aira Fitness Business (Franchise Agreement, Sections 5A and 5C)
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- Provide you with the Approved Suppliers and Approved Supplies Lists (Franchise Agreement, Section 6D).
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- Provide you for purchase the Initial Fitness Equipment Package (Franchise Agreement, Section 6A)
You will select the site for the Aira Fitness Business within the Preliminary Designated Area that will be identified in the Summary Pages when you sign the Franchise Agreement. You will identify a site within the Preliminary Designated Area (or if no sites are available in the Preliminary Designated Area, in proximity to it) for our approval. In evaluating the site, we will consider the following factors: rent amount, population and demographics of the surrounding area, and competition. Within 15 days after you have submitted all requested information concerning the site, we will notify you whether or not the site is approved. You must acquire a site for the Aira Fitness Business within 90 days after the Franchise Agreement is signed.
We estimate that your required purchases will represent approximately 75 to 85% of your 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 that you will need to operate the business (excluding franchise fees and royalties and other non-goods expenditures).
You must acquire and use all computer hardware and related accessories and peripheral equipment, including door access components, camera and surveillance equipment, televisions, and related items that we prescribe for use by the Aira FitnessBusiness. You may not use any computer hardware, accessories or peripheral equipment that we have not approved for use.
The estimated cost for video surveillance equipment is $400 to $800.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are obligated to purchase the Initial Fitness Equipment Package from Aira Fitness-approved suppliers. Item 11 states that before opening an Aira Fitness business, the franchisor will provide the franchisee with the Approved Suppliers and Approved Supplies Lists and provide the Initial Fitness Equipment Package for purchase. Item 8 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). This indicates a significant portion of the initial investment is tied to these required purchases.
Regarding site selection, Item 11 indicates that Aira Fitness will provide franchisees with site selection criteria and general design requirements. The franchisee is responsible for selecting a site within the Preliminary Designated Area, subject to the franchisor's approval. Aira Fitness will consider factors such as rent amount, population demographics, and competition when evaluating a potential site. The franchisee must acquire a site within 90 days of signing the Franchise Agreement.
The relationship between equipment purchases and site selection lies in the franchisee's need to find a location suitable for installing the required equipment. The site must accommodate the Initial Fitness Equipment Package, and the franchisee needs to factor in equipment costs when arranging leasing and financing. The time frame for site acquisition (90 days) and opening the business (180 days) also impacts equipment purchasing, as the franchisee must ensure timely delivery and installation to meet the opening deadline.
Furthermore, franchisees must acquire and use all computer hardware and related accessories and peripheral equipment, including door access components, camera and surveillance equipment, televisions, and related items that Aira Fitness prescribes. The estimated cost for video surveillance equipment is $400 to $800. The franchisee may not use any computer hardware, accessories, or peripheral equipment that Aira Fitness has not approved for use. Requirements for use may include, among other things, connection to remote servers, off-site electronic repositories, and high-speed Internet connections, and establishment of one or more e-mail accounts.