Is the initial franchise fee for Aira Fitness 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 initial franchise fee is generally not refundable. The standard initial franchise fee is $30,000, and the FDD states that this fee is considered fully earned and nonrefundable upon payment. This means that once a prospective franchisee signs the Franchise Agreement and pays the $30,000, they will not receive a refund under any circumstances. This is a fairly standard practice in the franchise industry, as the initial fee covers the franchisor's initial costs in evaluating and setting up the new franchisee.
However, the FDD outlines a different fee structure for multi-unit developers. These developers must pay a non-refundable Development Fee of $6,000 per additional Aira Fitness business they plan to develop. While this Development Fee is not refundable, $6,000 of it will be applied against the initial franchise fee for each subsequent franchise. For the second franchise, the franchise fee will be $10,000, and for each franchise after that, the fee will be $8,000. When signing the Franchise Agreement for these additional franchises, the franchisee will pay the balance due, which is $4,000 for the second franchise and $2,000 for each franchise after that.
It's important to note that if a multi-unit developer fails to meet the development schedule outlined in their agreement, they may be required to pay the then-current initial franchise fees if those fees are higher than the ones described in the FDD. This highlights the importance of adhering to the development schedule to avoid potentially higher costs. While the initial franchise fee is generally non-refundable, the Development Fee for multi-unit developers is also non-refundable but is credited towards the initial franchise fees for additional locations.