What is the minimum required amount for Commercial General Liability insurance, including Product Liability and Personal and Advertising Injury, that an Aira Fitness franchisee must maintain?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
ements below.
| Type of Insurance | Minimum Amount |
|---|---|
| Commercial General Liability including Product | $1,000,000 per occurrence; |
| Liability and Personal and Advertising Injury | $2,000,000 in the aggregate |
| Fire Legal Liability: Damages to premises | $500,000 |
| Medical Expenses | $1,000 per accident |
| Professional liability including abuse and molestation (for owners and employees) | $1,000,000 per occurrence |
| Hired and Non-Owned Auto Liability | $1,000,000 per claim |
| Property – Special Form, including mechanical breakdown | $300,000 |
| Improvements and Betterments | Included |
| Business Income (12 months) | Actual loss sustained |
| Crime (employee dishonesty, theft and robbery) | $10,000 per occurrence |
| Cyber Liability (internet security and privacy insurance) | $25,000 per occurrence |
| Employment Practices Liability Insurance | $100,000 |
| Deductible | $1,000 |
| Defense Costs | In addition to policy limits |
| Commercial Umbrella Liability | $10,000,000 per occurrence and $10,000,000 in t |
Source: Item 8 — **RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–33)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are required to maintain specific insurance coverage, including Commercial General Liability insurance. The minimum required amount for Commercial General Liability, which includes Product Liability and Personal and Advertising Injury coverage, is $1,000,000 per occurrence and $2,000,000 in the aggregate.
In addition to Commercial General Liability coverage, Aira Fitness requires franchisees to carry other types of insurance, such as Fire Legal Liability with a minimum of $500,000 for damages to premises, Medical Expenses coverage of $1,000 per accident, and Professional liability insurance of $1,000,000 per occurrence. Franchisees must also maintain Hired and Non-Owned Auto Liability coverage of $1,000,000 per claim and Property insurance of $300,000, among other coverages.
Aira Fitness mandates that franchisees purchase insurance from an approved supplier. The insurance policies must name Aira Fitness and any other designated parties as additional insured and include a waiver of subrogation in favor of each additional named insured. All required insurance not included in the insurance program must be obtained from a responsible carrier or carriers acceptable to Aira Fitness, generally with an AM Best rating of A- or better. Franchisees are also responsible for a deductible of $1,000.
It is important for prospective Aira Fitness franchisees to factor in these insurance requirements as part of their overall business expenses. Failing to maintain the required insurance coverage could result in a breach of the franchise agreement and potential liability for any incidents that occur at the fitness center. Franchisees should consult with approved insurance providers to ensure they obtain the necessary coverage to meet Aira Fitness's requirements.