Are Aira Fitness franchisees required to reimburse Aira Fitness Franchising LLC if they pay debts on the franchisee's behalf?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are required to reimburse Aira Fitness Franchising LLC if the company pays debts on their behalf. The Franchise Agreement states that franchisees must promptly pay all obligations, assessments, and taxes due to Aira Fitness, its affiliates, suppliers, lessors, and government entities. This includes amounts related to liens and encumbrances on property used in connection with the Aira Fitness business, as well as all other debts incurred in conducting the business.
If a franchisee fails to make these payments, Aira Fitness is authorized, but not required, to pay them on the franchisee's behalf. Should Aira Fitness make such a payment, the franchisee agrees to promptly reimburse the company upon demand. This provision protects Aira Fitness from financial losses resulting from a franchisee's failure to meet their financial obligations.
This is a fairly standard clause in franchise agreements. It ensures that the franchisor can step in to protect its brand and the financial health of the franchise system if a franchisee is unable to meet their financial obligations. However, it also places a responsibility on the franchisee to maintain good financial standing and promptly reimburse Aira Fitness for any payments made on their behalf to avoid further financial repercussions.