If an Aira Fitness developer fails to meet the deadlines in the Development Schedule, may they be required to pay the then-current initial franchise fee for the locations to be developed?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a Developer, the DevelopmentSchedule will be filled in at Exhibit B when you sign the Multi-Unit DevelopmentAgreement. If youfailto meet anyofthedeadlinessetforthin theDevelopmentSchedule,we have the right to (i) terminate your Multi-Unit Development Agreement or (ii) reduce the number of Aira Fitness Businesses you may develop, among other remedieswe may have. Additionally, you may be required to pay the
then-currentinitialfranchisefeeforthelocationsto bedevelopedunderthe Multi-UnitDevelopmentAgreement, as described in Item 5.
Source: Item 12 — **TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a developer fails to meet the deadlines outlined in the Development Schedule, Aira Fitness has the right to take certain actions. These include terminating the Multi-Unit Development Agreement or reducing the number of Aira Fitness businesses the developer is allowed to develop.
In addition to these options, Aira Fitness may require the developer to pay the then-current initial franchise fee for the locations that were intended to be developed under the Multi-Unit Development Agreement. Item 5 of the FDD provides further details on the initial franchise fee.
This provision serves as an incentive for developers to adhere to the Development Schedule. Failing to do so could result in not only the loss of development rights but also the obligation to pay the initial franchise fee for locations they will no longer be developing. Prospective Aira Fitness developers should carefully review the Development Schedule and assess their ability to meet the specified deadlines to avoid these potential penalties.