What happens if an Aira Fitness franchisee does not meet the minimum local advertising expenditure?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Advertising Expenditures Deficiency Fee | Minimum of $4,800 per year | Upon demand | If you do not spend a minimum of $4,800 per year on local advertising, we reserve the right to collect the deficiency to be paid into the National Marketing Fund. |
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must spend a minimum of $4,800 per year on local advertising. If a franchisee fails to meet this minimum annual spending requirement, Aira Fitness reserves the right to collect the deficiency.
The amount collected from the franchisee for not meeting the local advertising expenditure will be paid into the National Marketing Fund. This means that if a franchisee spends less than $4,800 on local advertising in a year, they will have to pay the difference to Aira Fitness, which will then use that money for national marketing efforts.
This policy ensures that all Aira Fitness franchisees contribute to both local and national marketing initiatives. It also gives Aira Fitness the ability to ensure that all franchisees are contributing to the overall brand awareness, even if they are not actively spending the required amount in their local market. Franchisees should factor this potential cost into their operating budget and marketing plan.