Are Aira Fitness franchisees required to pay taxes related to their business?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ess to communication with us and provide us information regarding the Aira Fitness Business.
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are responsible for paying all taxes related to their business. Specifically, Aira Fitness franchisees must pay all assessments and taxes due to federal, state, or local governments in connection with their Aira Fitness business.
This obligation extends to all payments, debts, and obligations related to the business. If a franchisee fails to make these payments, Aira Fitness has the right, but not the obligation, to pay on the franchisee's behalf. If Aira Fitness does so, the franchisee must promptly reimburse Aira Fitness for the payment upon demand.
Franchisees are also responsible for sales taxes, use taxes, and other similar taxes added to the sales price and collected from customers, which they then pay to the appropriate taxing authority. These taxes are deducted from gross sales when calculating royalties and other fees owed to Aira Fitness. This is a standard practice in franchising, where franchisees typically handle their own tax obligations as independent business owners.