Does the Aira Fitness franchisor have liability for taxes levied against the franchisee's assets?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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, Aira Fitness Franchising LLC will not be liable for any taxes levied against the franchisee, the Aira Fitness business, or the franchisee's assets. This includes sales, use, excise, income, gross receipts, property, or other taxes. This also applies to taxes levied against Aira Fitness Franchising LLC in connection with the business the franchisee conducts or on any payments the franchisee makes to Aira Fitness Franchising LLC, including royalty fees. The only exception is for Aira Fitness Franchising LLC's own income taxes.
This provision clarifies that franchisees are responsible for all taxes associated with their Aira Fitness business. It protects Aira Fitness Franchising LLC from being held liable for the franchisee's tax obligations. This is a common arrangement in franchising, as franchisees operate as independent business owners.
Prospective Aira Fitness franchisees should consult with a tax advisor to understand their tax obligations as business owners. They should also ensure they comply with all applicable tax laws and regulations to avoid penalties or legal issues. This section of the FDD underscores the importance of franchisees maintaining financial responsibility and managing their tax affairs independently.