What happens to National Marketing Fees for Aira Fitness that are not spent in a fiscal year?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not required to spend any particular amount of the Marketing Fund on marketing, advertising or production in the area in which your Aira FitnessBusiness is located. National Marketing Fees notspent in any fiscal year will be carried over for future use. We may make loans to the Marketing Fund bearing reasonable interest to cover any deficit of the Marketing Fund and cause the Marketing Fund to invest in a surplus for future use by the Marketing Fund. National Marketing Fees will not be used for advertising principally directed at the sale of franchises, provided our general marketing materials may reference franchise sales available. At your written request, we will provide you with an annual unaudited statement of the receipts and disbursements of the Marketing Fund.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 38–43)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, any National Marketing Fees that are not spent during a fiscal year will be carried over for use in future years. Aira Fitness has the option to make loans to the Marketing Fund with reasonable interest to cover any deficits. The Marketing Fund can also invest in a surplus for future use.
This means that franchisees' contributions to the National Marketing Fund are not necessarily spent immediately. Instead, Aira Fitness can save the funds for larger or longer-term marketing initiatives. The ability to carry over funds provides Aira Fitness with financial flexibility in managing its marketing efforts and responding to changing market conditions.
It's important to note that these National Marketing Fees cannot be used for advertising primarily aimed at selling franchises, although general marketing materials can mention that franchises are available. Franchisees have the right to request an annual unaudited statement detailing the receipts and disbursements of the Marketing Fund, allowing them to monitor how their contributions are being used. This provides a degree of transparency and accountability in the management of the fund.