Are Aira Fitness franchisees responsible for taxes based on the net income of Franchisor's Affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
out of your construction, development and/or operation of your Aira Fitness Business, whether or not caused by the negligent or willful action or failure to act on the part of you, the Owners, managers, employees or agents. We will have no liability for any sales, use, excise, income, gross receipts, property or other taxes, whether levied against you, the Aira Fitness Business or your assets, or on us, in connection with the business you conduct, or on any payments you make to us pursuant to this Agreement or any franchise agreement, including but not limited to royalty fees (except for our own income taxes).
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 specific taxes related to their Aira Fitness business, but not for the income taxes of the franchisor or its affiliates. The franchisee is liable for sales, use, excise, gross receipts, property, or other taxes levied against them, their business, or their assets. This also includes taxes on payments made to Aira Fitness, such as royalty fees. However, Aira Fitness is responsible for its own income taxes.
Furthermore, if a franchisee purchases equipment through Franchisor's Affiliate, the franchisee is responsible for all personal property, sales, use taxes, and other taxes assessed against or incurred by the franchisee or Franchisor's Affiliate in connection with the equipment. This clarifies that the franchisee's tax obligations extend to equipment-related taxes when dealing with the affiliate.
This division of tax responsibilities is typical in franchising. Franchisees, as independent business owners, are generally responsible for taxes related to their own operations and revenue. The franchisor, in turn, handles its own income tax obligations. This arrangement ensures that each party is accountable for their respective financial performance and tax liabilities.