Are Aira Fitness franchisees required to pay all accounts and other indebtedness incurred in the conduct of their Aira Fitness business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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11. YOUR OTHER OBLIGATIONS; NON-COMPETE COVENANTS
- A. Payment of Debts. You agree to pay promptly when due: (i) all payments, obligations, assessments and taxes due and payable to us and our affiliates, suppliers, lessors, federal, state or local governments, or creditors in connection with your business; (ii) amounts related to all liens and encumbrances of every kind and character created or placed upon or against any of the property used in connection with the Aira Fitness Business or business; and (iii) all accounts and other indebtedness of every kind incurred by you in the conduct of the Aira Fitness Business or business. In the event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, franchisees are obligated to pay all debts incurred while conducting their Aira Fitness business. This includes payments and obligations to Aira Fitness, its affiliates, suppliers, lessors, federal, state, or local governments, and creditors. It also covers amounts related to liens and encumbrances on property used in connection with the Aira Fitness business.
This obligation means that franchisees must manage their finances carefully to ensure timely payments. Failure to do so could result in Aira Fitness stepping in to make the payments on the franchisee's behalf, with the franchisee then required to promptly reimburse Aira Fitness. This arrangement could create additional financial strain if a franchisee is already struggling with debt.
Furthermore, the FDD states that franchisees are prohibited from using any Aira Fitness marks in a way that could create liability for Aira Fitness regarding the franchisee's debts or obligations. Franchisees are also responsible for all costs or fees charged by the Approved Payment Processor relating to the handling of debits pursuant to the merchant account authorization. This reinforces the franchisee's independent financial responsibility and prevents Aira Fitness from being held liable for the franchisee's financial missteps.
Overall, this requirement underscores the importance of sound financial management for Aira Fitness franchisees. Prospective franchisees should carefully consider their ability to handle debt and maintain timely payments before entering into a franchise agreement with Aira Fitness.