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For Aira Fitness franchises in Illinois, when is the initial franchise or development fee paid?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.

Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, the payment of the initial franchise or development fees for franchises in Illinois is deferred. Specifically, these fees are not due until Aira Fitness has fulfilled its initial obligations to the franchisee, and the franchisee has commenced business operations. This requirement was mandated by the Office of the Illinois Attorney General due to Aira Fitness's financial condition. This deferral provides a financial assurance to the franchisee, ensuring that Aira Fitness completes its pre-opening responsibilities before receiving the initial fees.

This deferral of fees is also applicable to the Multi-Unit Development Agreement in Illinois. The payment of the development fee is postponed until Aira Fitness has met its pre-opening obligations to the franchisee and the franchisee is open for business. Furthermore, Aira Fitness will not require or accept any initial franchise fees until the franchisee has received all pre-opening and initial training obligations and is open for business. For franchisees opening multiple locations under the Multi-Unit Development Agreement, the franchise fee will be released proportionally for each location as Aira Fitness meets its pre-opening obligations and the franchisee commences operations at each specific location.

This arrangement protects franchisees by aligning the payment of fees with the fulfillment of Aira Fitness's obligations. It reduces the financial risk for new franchisees, as they are not required to pay the initial fees until they are ready to start their business. Prospective franchisees should carefully review the Franchise Agreement and any state-specific addenda to fully understand the terms and conditions related to fee payments and Aira Fitness's obligations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.