Does the Aira Fitness franchisor need to provide prior notice before entering the Aira Fitness Business to inspect and audit?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
You will allow our representatives to enter, without prior notice, the Aira Fitness Business at any time to inspect and audit your business operations, records, and reports.
For purposes of this inspection and audit, records and reports exclude your employment records for your employees.
In the event any such inspection or audit shall disclose an understatement of the Gross Sales of the Aira Fitness Business for any period, you shall pay to us within ten (10) days after receipt of the inspection or the audit report, the Royalties, the National Marketing Fees, and other fees plus interest and late fees due on the amount of the understatement.
Further, if the audit is made necessary by your failure to furnish reports, financial statements, tax returns or schedules as herein required, or if an understatement of Gross Sales for any period is determined by any such inspection or audit to be greater than two percent (2%), you shall reimburse usfor the cost of such inspection or audit including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board, and compensation of our employees or agents, and we shall have the right to require you to furnish, at your sole cost and expense, financial statements prepared by an independent certified public accountant thereafter.
In addition, you shall pay for all costs, as specified above, of the inspection and audit if your books and records are not produced at the time of the inspection and audit, provided that we notified you at least five (5) days prior to the scheduled inspection and audit date.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness representatives can enter the Aira Fitness Business at any time without prior notice to inspect and audit business operations, records, and reports. However, this excludes employment records for employees.
This means that as an Aira Fitness franchisee, you must allow Aira Fitness representatives access to your business for inspection and audit purposes without any prior warning. This includes access to all business operations, records, and reports, but specifically excludes employee employment records.
If an audit reveals an understatement of Gross Sales for any period, you must pay the Royalties, National Marketing Fees, and other fees, plus interest and late fees, on the understated amount within ten days of receiving the audit report. Furthermore, if the understatement is greater than two percent (2%), or if the audit was necessary due to your failure to furnish required reports, you will be responsible for reimbursing Aira Fitness for the cost of the inspection or audit, including attorney fees, accountant charges, and travel expenses.
However, if Aira Fitness requires you to produce your books and records at the time of inspection and audit and provides you with at least five days' notice prior to the scheduled inspection and audit date, you shall pay for all costs of the inspection and audit if the books and records are not produced at the time of the inspection and audit.