When is the initial franchise fee for Aira Fitness payable, and is it refundable?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
chise Fee
The initialfranchise fee is $30,000. The initialfranchise fee is payable in fullwhenthe Franchise Agreement is signed, and is considered fully earned and nonrefundable upon payment.
In 2024, we did not sell any franchises for a fee different than the published initial franchise fee.
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Multi-Unit Development
If you are a Developer, you mustsign the Franchise Agreement for your first Aira Fitness franchise and pay the initial franchise fee for the first franchise to be developed at the same time as you sign the Multi-Unit Development Agreement. In addition, you must pay a non-refundable Development Fee when you sign the Multi-Unit Development Agreement. The Development Fee is $6,000 times the number of additional Aira Fitness Businesses to be developed. The franchise fee for the second franchise will be $10,000. The franchise fee for the additional franchises after the second franchise will be $8,000.
When you sign the Franchise Agreement for the additional franchises, $6,000 of the Development Fee paid will be applied againstthe initial franchise fee for the franchise, and you will pay the balance due of $4,000 forthe second franchise and $2,000 for the additional franchises after the second franchise. For each franchise to be developed under the Multi-Unit Development Agreement, you will pay the initial franchise feesin the amount described in this Item 5 unless you fail to meet the Development Schedule in the Multi-Unit Development Agreement. If you failto meettheDevelopmentScheduleandthe then-currentinitialfranchisefeesforfranchises are higher than those described in this Franchise Disclosure Document, you must pay the then-current initial franchise fee.
The Development Fee is uniform for all Developers. The Development Fee is not refundable under any circumstances, but it is credited against additional franchise fees as described above.
Source: Item 5 — INITIAL FEES (FDD pages 15–18)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the standard initial franchise fee is $30,000. This fee is payable in full when the Franchise Agreement is signed. Once paid, the initial franchise fee is considered fully earned and nonrefundable. This means that a prospective Aira Fitness franchisee should be certain of their decision before signing the agreement, as they will not be able to recover this fee should they change their mind or be unable to proceed with opening their franchise. This non-refundable policy is a fairly standard practice in the franchise industry, as the franchisor incurs costs in evaluating and onboarding new franchisees.
For franchisees pursuing a multi-unit development agreement with Aira Fitness, the initial fees are structured differently. While the initial franchise fee for the first location is paid upon signing the Franchise Agreement, subsequent locations have reduced franchise fees. The franchise fee for the second franchise will be $10,000, and the franchise fee for additional franchises after the second will be $8,000. A non-refundable Development Fee is also required, calculated as $6,000 times the number of additional Aira Fitness businesses to be developed. This fee structure incentivizes multi-unit development while ensuring Aira Fitness is compensated for the additional support and resources required.
Notably, $6,000 of the Development Fee is applied against the initial franchise fee for each subsequent franchise. Therefore, the franchisee will pay a balance of $4,000 for the second franchise and $2,000 for each additional franchise after the second. However, if the franchisee fails to meet the development schedule outlined in the Multi-Unit Development Agreement and the then-current initial franchise fees are higher than those described in the FDD, the franchisee must pay the then-current initial franchise fee. This clause protects Aira Fitness from potential losses due to delayed development and ensures that all franchisees are paying equitable fees based on the prevailing market conditions.