Does the Aira Fitness franchisor have liability for the franchisee's tax obligations?

According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness will not have any tax liability for the franchisee's business. Specifically, Aira Fitness is not liable for any sales, use, excise, income, gross receipts, property, or other taxes levied against the franchisee, the Aira Fitness business, or the franchisee's assets. This also applies to taxes levied against Aira Fitness in connection with the business the franchisee conducts or on any payments the franchisee makes to Aira Fitness under the Franchise Agreement, including royalty fees, except for Aira Fitness's own income taxes.

This provision clarifies the financial responsibilities of each party, ensuring that franchisees are aware they are responsible for all taxes associated with their Aira Fitness business. It is a common practice in franchising for franchisees to bear the tax burden, as they operate as independent business owners. This arrangement helps to maintain the franchisor's financial clarity and prevents them from being liable for the financial performance or tax obligations of individual franchisees.

However, franchisees should consult with a tax professional to fully understand their tax obligations and how they apply to their specific circumstances. Franchisees should also be aware that they are obligated to indemnify Aira Fitness against any damages or taxes for which Aira Fitness is held liable due to the franchisee's actions. This includes costs Aira Fitness incurs in defending against any claim or action in which they are named as a party.