What happens if an Aira Fitness franchisee does not maintain a sufficient balance in their Merchant Account?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Aira Fitness's 2025 Franchise Disclosure Document, franchisees are required to maintain a sufficient balance in their Merchant Account to cover payments owed to Aira Fitness and its affiliates. Aira Fitness is authorized to debit the franchisee's Merchant Account for various fees, including royalty fees, national marketing fund contributions, website fees, yearly maintenance fees, interest, and late fees. The exact dollar amount debited may vary. These debits typically occur on the first day of every calendar week, though the timing can change with notice.
If the Merchant Account lacks sufficient funds to cover the full amount due at the time of a debit, Aira Fitness is entitled to collect interest and late fees as outlined in the Franchise Agreement. These interest and late fees will then be debited from the Merchant Account once sufficient funds are available. The franchisee is responsible for covering any costs or fees charged by the Approved Payment Processor related to these debits.
This arrangement ensures that Aira Fitness can automatically collect the necessary fees from its franchisees. However, it also places a responsibility on the franchisee to carefully manage their Merchant Account balance to avoid incurring interest, late fees, and potential penalties. Franchisees should proactively monitor their account and ensure sufficient funds are available to cover anticipated debits. This is a fairly standard practice in franchising, where franchisors often automate fee collection for consistency and efficiency.