What is the interest rate applied to any indemnity owed to Aira Fitness's Franchisor's Affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
As a duly authorized signer on the Merchant Account, I authorize Aira Fitness Franchising, LLC ("Company") to initiate monthly Merchant Account debits for payments due or when applicable, apply Merchant Account credits to the same. Said debits may be for Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts Franchisee owes to the Company or its affiliates pursuant to the Franchise Agreement between Franchisee and Company, and in amounts required by the Franchise Agreement. The dollar amount to be debited for each debit will vary.
Currently, Company is initiating monthly debits on the first day of every calendar week for payment of the Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts then due, unless that day falls on a holiday, in which case the debit will be initiated the following business day. The dates and intervals for initiating debits for amounts due under the Franchise Agreement may be changed upon delivery of notice to Franchisee.
If, at the time of any debit, the Merchant Account does not contain sufficient credit for all amounts then due (Non-Sufficient or Uncollected Funds), I understand that Company shall be entitled to collect interest and late fees as provided in the Franchise Agreement, and to debit same from the Merchant Account once there are sufficient funds to cover it.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
Based on the 2025 Aira Fitness Franchise Disclosure Document, the interest rate applied to amounts owed to Aira Fitness or its affiliates is referenced in the context of merchant account debits. Specifically, Aira Fitness Franchising, LLC is authorized to debit monthly payments from the franchisee's merchant account for various fees, including interest.
The FDD states that if the merchant account lacks sufficient funds for all amounts due, Aira Fitness is entitled to collect interest and late fees as provided in the Franchise Agreement. However, the specific interest rate is not disclosed in this section.
Prospective Aira Fitness franchisees should carefully review the Franchise Agreement to understand the exact interest rate and late fee policies applicable to any amounts owed to Aira Fitness or its affiliates. It is important to clarify these financial obligations to avoid unexpected costs and ensure compliance with the agreement.