If a Cooperative chooses to contribute a greater amount than $200 for Aira Fitness, what majority vote is required for the franchisee to be obligated to contribute that amount?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
y depict the Marks (any use of the Marks, or a new variation you propose to the Marks, without our prior written approval is prohibited).
C. Local Marketing Fund and Advertising Co-ops.
We may, at our option, designate any geographic area in which at least two AIRA FITNESS franchises are located as a "designated advertising area" for the purposes of establishing a local marketing fund that we control ("Local Marketing Fund") or local or regional advertising cooperative controlled by majority vote of its members ("Cooperative"), and may require you to make a contribution to a local marketing fund and/or a Cooperative, as provided in this paragraph. Any amount contributed to a Local Marketing Fund or Cooperative will be in addition to, and not in lieu of, the National Marketing Fee described above. We have the right to determine the amount of contribution, in our sole judgment, provided that aggregate monthly contributions will not exceed Two Hundred Dollars ($200) per month (subject to adjustment based on the CPI as provided in Section 9.E). If, however, a Cooperative chooses to contribute a greater amount and the amount is approved by a two-thirds majority of the members of the Cooper
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, Aira Fitness may designate a geographic area with at least two franchises as a designated advertising area, allowing for the establishment of a Local Marketing Fund or Cooperative. Aira Fitness has the right to determine the contribution amount, but aggregate monthly contributions cannot exceed $200 per month, subject to CPI adjustments.
However, if a Cooperative decides to contribute more than $200, a two-thirds majority vote of the Cooperative members is required for all members, including the franchisee, to be obligated to contribute that higher amount. This contribution counts toward the minimum local advertising expenditures outlined in Section 8.B of the Franchise Agreement.
Each Aira Fitness Business in the Cooperative has one vote, and the Cooperative must adopt governing bylaws approved by Aira Fitness. This ensures that franchisees have a voice in local advertising decisions, but also that they can be compelled to contribute more than the standard $200 if a supermajority agrees. Franchisees should carefully consider the potential for these increased contributions when evaluating the overall cost of operating an Aira Fitness franchise.