What interest rate per annum does Aira Fitness charge on overdue amounts?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interest | 18% per annum | Upon demand | Payable only if you fail to pay amounts owed to us when due. |
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee fails to pay amounts owed to Aira Fitness when due, the company charges interest at a rate of 18% per annum. This interest applies to any overdue amounts owed to Aira Fitness.
This means that if an Aira Fitness franchisee is late on payments for fees like royalties, technology fees, or any other amounts due to the franchisor, they will incur an annual interest charge of 18% on the outstanding balance. This is a fairly standard practice in franchising, as franchisors need to ensure timely payments to maintain their own financial stability and operational efficiency.
Prospective franchisees should be aware of this interest charge and ensure they have sufficient capital and financial management practices in place to avoid late payments. Failing to do so can result in significant additional costs over time, impacting the profitability of their Aira Fitness franchise. Franchisees should also clarify with Aira Fitness whether this interest rate is subject to change and under what conditions.