When does Aira Fitness Franchising, LLC defer the initial franchise fees for franchises in North Dakota, and why?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | addendum to the Franchise Agreen | nent is by and between Aira Fitness Franchising LLC (Company) and (Franchisee) to amend said Agreement as follows: |
|---|---|---|
| 1. | Paragraph 9(A) of the Agreement | on "Initial Franchise Fee" is amended by the addition of the following: |
| Notwithstanding the language in Pais open for business. | ragraph 9(A), payment of the initial franchise fee is deferred until Franchisee |
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, for franchisees in North Dakota, the payment of the initial franchise fee is deferred until the franchisee is open for business. This information is part of an addendum to the franchise agreement specific to North Dakota.
This deferral means that prospective Aira Fitness franchisees in North Dakota will not be required to pay the initial franchise fee until their location is ready to commence operations. This could significantly reduce the upfront financial burden on new franchisees, allowing them to allocate their capital towards other essential startup costs such as location build-out, equipment, and initial marketing expenses.
The addendum does not explicitly state the reason for this deferral, but it is common practice for franchisors to comply with state-specific franchise laws and regulations. Franchise laws in certain states, like Virginia and Illinois as shown in other addenda, require deferral of fees to protect franchisees. Prospective franchisees should consult with Aira Fitness and legal counsel to understand the specific reasons and implications of this deferral in North Dakota.