What happens if an Aira Fitness franchisee fails to pay any amount demanded by Franchisor's Affiliate pursuant to Section 6(a)?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
.jpeg)
| Address | Address | |---------------------------|---------------------------| | City | City | | State | State | | Zip Code | Zip Code |
Attachment D to the Franchise Agreement
MERCHANT ACCOUNT AUTHORIZATION
As a duly authorized signer on the Merchant Account, I authorize Aira Fitness Franchising, LLC ("Company") to initiate monthly Merchant Account debits for payments due or when applicable, apply Merchant Account credits to the same. Said debits may be for Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts Franchisee owes to the Company or its affiliates pursuant to the Franchise Agreement between Franchisee and Company, and in amounts required by the Franchise Agreement. The dollar amount to be debited for each debit will vary.
Currently, Company is initiating monthly debits on the first day of every calendar week for payment of the Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts then due, unless that day falls on a holiday, in which case the debit will be initiated the following business day. The dates and intervals for initiating debits for amounts due under the Franchise Agreement may be changed upon delivery of notice to Franchisee.
If, at the time of any debit, the Merchant Account does not contain sufficient credit for all amounts then due (Non-Sufficient or Uncollected Funds), I understand that Company shall be entitled to collect interest and late fees as provided in the Franchise Agreement, and to debit same from the Merchant Account once there are sufficient funds to cover it.
Franchisee is responsible for, and shall pay on demand, all costs or fee charged by the Approved Payment Processor holding the account relating to the handling of debits pursuant to this authorization. I understand and authorize all of the above.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, if a franchisee fails to pay amounts owed to Aira Fitness or its affiliates, several actions can be taken. Aira Fitness is authorized to initiate monthly debits from the franchisee's merchant account for various fees, including royalty fees, national marketing fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts owed under the Franchise Agreement. The exact dollar amount debited can vary. If the merchant account lacks sufficient funds, Aira Fitness can collect interest and late fees and debit these from the account once sufficient funds are available. The franchisee is also responsible for any fees charged by the payment processor related to these debits.
Furthermore, Aira Fitness specifies that all payments to them and their affiliates may be deducted from the monies collected by the franchisee's billing and payment processor. The franchisee authorizes the billing and payment processor to deduct these amounts and pay them to Aira Fitness on the due date. The franchisee must maintain a sufficient balance in their merchant account to cover these deductions and is responsible for any associated penalties, fines, or expenses related to the transfer of funds.
Additionally, failure to use the approved payment processor is listed as an event that triggers immediate termination of the franchise agreement without an opportunity to cure the default. This highlights the importance of adhering to Aira Fitness's payment protocols to avoid potential termination of the franchise agreement.