If not in compliance with the Development Schedule, what is the minimum initial franchise fee for the second Aira Fitness franchise agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
s Agreement is not a Franchise Agreement, and you shall have no right to use in any manner the System or the Marks by virtue of entering into this Agreement.
- 1.5 Developer shall have no right under this Agreement to license others to operate a business or use the System or the Marks.
2. FEES
2.1 Concurrent with the execution of this Agreement, you must execute a Franchise Agreement for the first Aira Fitness Center to be developed and pay the initial franchise fee of Thirty Thousand Dollars ($30,000.00) due under said Franchise Agreement. The initial franchise fee for the second Franchise Agreements shall be Ten Thousand Dollars ($10,000.00) on the condition that, at the time you sign any additional Franchise Agreement under this Agreement, you are currently in compliance with the Development Schedule.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the initial franchise fee for the second Aira Fitness franchise agreement is typically $10,000 if the franchisee is in compliance with the Development Schedule. However, if the franchisee is not in compliance with the Development Schedule when signing the additional franchise agreement, they will be required to pay the then-current initial franchise fee being charged to new franchisees, but only if that fee is greater than $10,000.
In practical terms, this means that if a franchisee falls behind on their development obligations, they risk paying a higher initial franchise fee for their second Aira Fitness location. The fee could be significantly more than the standard $10,000, depending on what Aira Fitness is charging new franchisees at that time.
This condition incentivizes franchisees to adhere to the Development Schedule outlined in their agreement. Failing to meet the schedule could result in increased costs for expansion. Prospective franchisees should carefully review the Development Schedule and assess their ability to meet its requirements to avoid potentially higher fees.