What happens if an Aira Fitness franchisee fails to report monthly Gross Sales on a timely basis?

According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee fails to report their monthly Gross Sales on time, Aira Fitness has the right to estimate the Gross Sales. Following this estimation, Aira Fitness can then withdraw any unpaid Royalties, National Marketing fees, or other amounts due by using the Approved Payment Processor.

This means that it is imperative for franchisees to submit their Gross Sales reports promptly to avoid potential estimations that may not accurately reflect their actual sales. The use of an Approved Payment Processor allows Aira Fitness to directly access funds to cover outstanding fees, which could impact the franchisee's cash flow.

Franchisees should ensure they understand the reporting deadlines and procedures outlined in the Operations Manual to avoid these penalties. Maintaining accurate records and submitting reports on time is crucial for a healthy relationship with Aira Fitness and for managing the financial aspects of the franchise effectively. Furthermore, intentionally underreporting membership sales or Gross Sales, or falsifying financial data, can lead to immediate termination of the Franchise Agreement without an opportunity to cure the default.