What is the interest rate charged by Aira Fitness on amounts owed to them or their affiliates?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Attachment D to the Franchise Agreement
MERCHANT ACCOUNT AUTHORIZATION
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)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchise agreement allows Aira Fitness Franchising, LLC to debit franchisee accounts for various fees, including interest. Specifically, Attachment D to the Franchise Agreement, titled "MERCHANT ACCOUNT AUTHORIZATION" states that Aira Fitness is authorized to debit monthly for "interest, late fees, and any other amounts Franchisee owes to the Company or its affiliates pursuant to the Franchise Agreement".
The document further clarifies that if a franchisee's 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. These amounts can then be debited from the merchant account once sufficient funds are available. However, the specific interest rate that Aira Fitness charges on overdue amounts is not specified in this section.
While the document mentions the possibility of interest charges, it does not provide the actual interest rate or the conditions under which it is applied. A prospective franchisee should inquire about the specific interest rate, how it is calculated, and under what circumstances it would be charged to fully understand the potential costs associated with late payments or insufficient funds.