What is the maximum late fee that Aira Fitness can charge for unpaid Pod rent?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
rsonal property (together with all attachments, replacements, parts, substitutions, additions, repairs, accessions and accessories, incorporated therein and/or affixed, thereto) (the "Equipment") described in any Schedule to Equipment Lease (a "Schedule") subsequently executed by the parties hereto and incorporating the terms of this Equipment Lease by reference therein (the "Lease").
- (b) The Equipment is and shall at all times be and remain the sole and exclusive personal property of Franchisor's Affiliate, and notwithstanding any trade-in or down payment by Franchisee or on its behalf with respect to the Equipment, Franchisee shall have no right, title or interest therein or thereto except as to the use thereof subject to the terms or conditions of this Lease.
- 3. Term and Rent; Purchase Option. Franchisee shall pay as monthly rent for use of the Equipment the amount described in Paragraph 1(h) above on the 1st day of each month following the Commencement Date. If any rental shall be unpaid for more than five (5) days after the
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee's rental payment for equipment is more than five days late, Aira Fitness will charge a late fee. This fee is the greater of $100 or 18% of the unpaid amount. However, the late fee will not exceed the maximum lawful charges applicable.
For a prospective Aira Fitness franchisee, this means that if you lease equipment from Aira Fitness's affiliate and fail to pay the monthly rent on time, you will incur a late fee. The exact amount will depend on how much rent is outstanding, but it will be at least $100. For example, if your rent payment is $2,000 and you are six days late, the late fee would be $360 (18% of $2,000), since that is greater than $100.
It is important to note that the late fee cannot exceed the maximum lawful charges, which may vary depending on the applicable state or local laws. Franchisees should be aware of these potential charges and ensure timely payments to avoid incurring these fees. Paying close attention to the due dates and maintaining sufficient funds available for payment is crucial for managing costs and maintaining a good financial standing with Aira Fitness.