How does the Aira Fitness franchisor's assistance with marketing in Item 11 relate to the franchisee's ability to generate revenue?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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Local Marketing
You must use your best efforts to aggressively promote and advertise the Aira Fitness Business in your local area and participate in any local promotional programs that we establish (subject to applicable law). We require that you spend at least $400 per month on local advertising.
Any marketing material not designed or provided by us must be pre-approved; you must submit your marketing materials to us for approval prior to use (print, electronic or other forms of media) and actively promote yourAira FitnessBusiness andthe Systemthrough use of approved localmarketingand marketing materials. We will not unreasonably withhold approval of your marketing materials if they are factually accurate and current, dignified, up-to-date,and in goodcondition, adhere to brand standards, andaccurately depict the Aira Fitness Marks. The marketing materials will be deemed approved if we do not disapprove or comment within 10 business days of receipt.
National Marketing Fund
As of the date of this Disclosure Document, we do not yet operate and manage a National Marketing Fund (the "Marketing Fund")to advertise and promote Aira Fitness Businesses in the System. However, we plan to establish a National Marketing Fund in the future. Once we establish the National Marketing Fund, you will pay us the monthly National Marketing Fee. We will deposit the National Marketing Fee in the Marketing Fund which is part of our general account. We may use the Marketing Fund to conduct national, regional and local advertising, marketing, promotional and public relations campaigns, including the cost of: (i) preparing and conducting print, point-of-sale, radio, television, internet, electronic, out-of-home, and billboard advertising; (ii) conducting e-commerce website activities; (iii) updating and hosting a website (including the development of locator programs); (iv) providing market intelligence through analytics to the System; (v) conducting member interviews,focus groups and surveys; (vi) providing creative development services including the development and modification of Aira FitnessBusiness design and trade dress, logos, graphics and vehiclewraps;(vii) obtainingsponsorships andendorsements;(viii) developingand conducting contests, sweepstakes and other prize promotions; (ix) developing and administering member loyalty programs, coupons and gift certificates;(x) engagingadvertisingand marketingagencies andpublic relations firms; and (xi) any other expenses for developing and promoting the brand or System. We also may use the Marketing Fund to develop advertising and promotional materials for regional and local advertising and marketing cooperatives and for use in each franchisee's local market. In certain markets, we may assist a franchisee with its initial advertising and promotional activities to increase brand awareness. We may have an in-house marketingorwe may contractwith variousoutside advertisingand marketingagencies andthird party vendors to produce certain advertising and promotional materials and to create and implement public relations campaigns.We willdetermine the useof the moniesin the MarketingFund.We may be reimbursed for reasonable administrative costs,salaries and overhead incurred in administering or providing services to the Marketing Fund.
We are not required to spend any particular amount of the Marketing Fund on marketing, advertising or production in the area in which your Aira FitnessBusiness is located. National Marketing Fees notspent in any fiscal year will be carried over for future use. We may make loans to the Marketing Fund bearing reasonable interest to cover any deficit of the Marketing Fund and cause the Marketing Fund to invest in a surplus for future use by the Marketing Fund. National Marketing Fees will not be used for advertising principally directed at the sale of franchises, provided our general marketing materials may reference franchise sales available. At your written request, we will provide you with an annual unaudited statement of the receipts and disbursements of the Marketing Fund.
All Aira Fitness franchisees are required to pay the National Marketing Fee, provided the amount of the National Marketing Fee may vary depending on the National Marketing Fee amount in effect at the time the franchisee signed a franchise agreement. Company or affiliate owned Aira Fitness Businesses will not contribute to the Marketing Fund.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Item 11 outlines the franchisor's obligations regarding advertising and marketing, which directly impacts a franchisee's ability to generate revenue. Aira Fitness requires franchisees to aggressively promote their business locally and participate in any local promotional programs established by the franchisor. Franchisees are obligated to spend at least $400 per month on local advertising. This local marketing effort is intended to drive traffic and build brand awareness within the franchisee's specific geographic area, leading to increased membership sales and revenue.
In addition to local marketing, Aira Fitness plans to establish a National Marketing Fund in the future. Once established, franchisees will contribute to this fund through a monthly National Marketing Fee. The funds will be used for national, regional, and local advertising campaigns across various media, including print, radio, television, internet, and out-of-home advertising. These campaigns aim to promote the Aira Fitness brand and attract new members, thereby boosting revenue for all franchisees within the system. The franchisor has the discretion to determine how the monies in the Marketing Fund are used and may be reimbursed for reasonable administrative costs.
Aira Fitness also has the right to establish Local Marketing Funds or Cooperatives in geographical areas with at least two franchises. If such a fund or cooperative is established in a franchisee's market, participation and contribution are mandatory. Contributions to these local entities are in addition to the National Marketing Fee. The franchisor determines the contribution amount, but aggregate monthly contributions will not exceed $200 per month unless a 2/3 vote of the Cooperative members approves a higher fee. These cooperative efforts allow franchisees to pool resources and coordinate marketing activities within their specific region, further enhancing their ability to generate revenue.
All marketing materials not designed or provided by Aira Fitness must be pre-approved by the franchisor to ensure they align with brand standards. This approval process ensures that all marketing efforts maintain a consistent brand image and accurately represent the Aira Fitness brand, which is crucial for attracting and retaining customers. While the franchisor aims to assist with marketing efforts, the ultimate success in generating revenue depends on the franchisee's active participation in local marketing and adherence to the franchisor's guidelines.