When does the monthly royalty fee obligation begin for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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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.
Franchisee is responsible for, and shall pay on demand, all costs or fee charged by the Approved Payment Processor holding the account relating to the handling of debits pursuant to this authorization. I understand and authorize all of the above.
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to the 2025 Aira Fitness Franchise Disclosure Document, the franchisee's obligation to pay monthly royalty fees begins upon opening for business. The franchisor, Aira Fitness Franchising, LLC, is authorized to initiate monthly debits from the franchisee's Merchant Account for royalty fees, national marketing fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts owed under the Franchise Agreement. These debits are typically initiated on the first day of every calendar week, unless that day falls on a holiday, in which case the debit will be initiated the following business day.
The FDD specifies that the dates and intervals for initiating debits may be changed with notice to the franchisee. It is the franchisee's responsibility to ensure that the Merchant Account has sufficient funds to cover all amounts due. Failure to maintain sufficient funds may result in interest and late fees.
In addition to royalty fees, franchisees must also pay a monthly technology fee of up to $500.00, which is payable along with the Royalty and National Marketing Fee. Franchisees are also responsible for charging members a yearly maintenance fee in June of each calendar year, 50% of which, but not less than $19.50 per member, must be paid to Aira Fitness. Franchisees must also pay a monthly website fee, which shall not exceed $400.00 per month, upon opening for business.