Can the non-refundability of the Aira Fitness Development Fee be overridden by any provision in the Franchise Agreement?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
y additional franchise agreement, you will pay the then-current initial franchise fee being charged to new franchisees if it is greater than Ten Thousand Dollars ($10,000) for the second or greater than Eight Thousand Dollars ($8,000.00) for the third or other multiple Franchise Agreements above two.
2.2 Upon the execution of this Development Agreement, you shall pay a fee ("Development Fee") in the amount of Six Thousand Dollars ($6,000.00) times the number of additional Aira Fitness Center to be developed after the one for which Developer is signing a Franchise Agreement contemporaneously with this Development Agreement. The Development Fee is consideration for this Development Agreement, is fully earned by Franchisor upon execution of this Development Agreement and is non-refundable, notwithstand
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the non-refundability of the Development Fee cannot be overridden by any provision in the Franchise Agreement. Upon the execution of the Development Agreement, the developer must pay a Development Fee of $6,000 multiplied by the number of additional Aira Fitness Centers to be developed. This fee is consideration for the Development Agreement and is fully earned by Aira Fitness upon execution of the agreement.
This non-refundable clause means that once the Development Agreement is signed, the franchisee is obligated to pay the Development Fee, and this fee will not be returned under any circumstances, even if the franchisee does not proceed with developing all the planned Aira Fitness Centers. However, Aira Fitness will credit $6,000 of the Development Fee against the Initial Franchise Fee for each additional Franchise Agreement for an Aira Fitness Center executed according to the Development Agreement.
This policy is a significant consideration for potential Aira Fitness developers. It highlights the importance of carefully assessing their ability to meet the development schedule and financial obligations before entering into a Development Agreement. Franchisees should be aware that failing to meet the development schedule could result in the loss of the Development Fee, even if unforeseen circumstances arise. It is essential to have a clear understanding of the terms and conditions of the Development Agreement and to seek legal counsel if necessary.