What happens if the Merchant Account has Non-Sufficient or Uncollected Funds at the time of an Aira Fitness debit?
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, if a franchisee's merchant account has non-sufficient or uncollected funds at the time of a scheduled debit, Aira Fitness is entitled to collect interest and late fees as outlined in the Franchise Agreement. Aira Fitness can then debit these fees from the merchant account once sufficient funds are available to cover the outstanding amount.
This means that Aira Fitness franchisees must ensure they maintain adequate funds in their merchant accounts to cover all fees owed to Aira Fitness, which may include royalty fees, national marketing fund contributions, website fees, yearly maintenance fees, interest, and late fees. These debits are typically initiated on the first day of every calendar week, though the exact timing can be changed with notice from Aira Fitness.
Furthermore, the franchisee is responsible for covering any costs or fees charged by the Approved Payment Processor related to handling these debits. This arrangement underscores the importance of careful financial management and planning for Aira Fitness franchisees to avoid incurring additional charges and potential penalties due to insufficient funds.