How does the Aira Fitness franchisor's assistance with marketing in Item 11 relate to the franchisee's obligations in Item 9?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Local Marketing Fund or Cooperative
We have the right to designate, as we deem appropriate, any geographical area in which at least two Aira Fitness franchises are located as a "designated advertising area" for the purposes of establishing a local marketing fund that we control ("Local Marketing Fund") or local or regional advertising cooperative controlled byitsmembers ("Cooperative"). If a LocalMarketingFund orCooperativeis establishedin your market, you will be required to participate and contribute. Any amount contributed to a Local Marketing Fund or Cooperative will be in addition to, and not in lieu of, the National Marketing Fee. Payments you make to the cooperative are credited toward your local advertising expense requirement. We have the right to determine the amount of contribution, in our sole judgment, provided that aggregate monthly contributionswill not exceed $200 per month (subject to adjustment for increasesin the Consumer Price Index) unless a 2/3 vote of the members of the Cooperative approves a higher fee.
What This Means (2025 FDD)
Based on the 2025 FDD, Aira Fitness franchisees have specific obligations regarding local and national marketing efforts, while the franchisor provides assistance and manages marketing funds. Item 11 outlines these aspects of advertising and marketing, detailing both the franchisor's role and the franchisee's responsibilities.
Aira Fitness requires franchisees to aggressively promote their business locally, spending at least $400 per month on local advertising. Franchisees must also participate in any local promotional programs established by Aira Fitness, provided they comply with applicable laws. This local marketing requirement ensures that each Aira Fitness location actively engages its community to build brand awareness and attract customers.
In addition to local marketing, Aira Fitness franchisees may be required to contribute to a National Marketing Fund and/or a Local Marketing Fund or Cooperative. The amount of the National Marketing Fee can vary based on when the franchisee signed their agreement. If a Local Marketing Fund or Cooperative is established in the franchisee's market, they must participate and contribute, with monthly contributions capped at $200 (subject to CPI adjustments) unless a 2/3 vote of the Cooperative members approves a higher fee. Payments to the cooperative count toward the local advertising expense requirement.
Aira Fitness retains significant control over these marketing efforts, including the right to form, change, dissolve, or merge Cooperatives. While the franchisor is not obligated to spend any specific amount of the National Marketing Fund in the franchisee's area, they will provide an annual unaudited statement of the fund's receipts and disbursements upon written request. Company-owned Aira Fitness businesses do not contribute to the Marketing Fund. This structure ensures that Aira Fitness can coordinate marketing strategies across the franchise system while also requiring franchisees to invest in local promotion.