Does paying re-inspection fees and non-compliance royalties to Aira Fitness cure the non-compliance default?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
d National Marketing Fee as provided in Paragraph 9.F. above. We will give you at least sixty (60) days written notice before increasing or decreasing the Technology Fee.
J. Non-Compliance.
A. Re-Inspection Fees. If we conduct an inspection of the Aira Fitness Business and determine that the Business or business operations are not in full compliance with this Agreement, and/or any mandatory standards, procedures or specifications in the Manual or otherwise provided to you in writing, we may conduct a re-inspection after you have been provided a reasonable opportunity to correct all deficiencies, which need not be more than 30 days, to ensure that you have addressed all of the deficiencies. In the event that we determine on the re-inspection that the Business or business operations are still not in full compliance, you shall be in default and shall be obligated to pay a non-compliance fee in the amount of Five Hundred Dollars ($500.00) for each subsequent monthly inspection in which you continue to not be in full compliance with this Agreement, and/or any
mandatory standards, procedures or specifications in the Manual or otherwise provided to you in writing, as we determine in our sole discretion. In addition, if the Business or business operations are still not in full compliance as of the date of the re-inspection or new deficiencies are found, you shall pay us One Hundred Fifty Dollars ($150.00) per hour for our representative to conduct a second or subsequent re-inspection. Your payment of re-inspection fees and non-compliance royalties shall not be considered a cure of the non-compliance default, and our acceptance of such fees and royalties shall be without prejudice to taking any other action based on the defaults, including but not limited to, termination of this Agreement. Notwithstanding the foregoing, you shall pay us a fee equal to the actual costs and expenses related to the compensation, travel, lodging and living expenses
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, paying re-inspection fees and non-compliance royalties does not automatically cure a non-compliance default. Even if Aira Fitness accepts these payments, it does not prevent them from taking further action, including terminating the franchise agreement.
Specifically, if an inspection reveals that an Aira Fitness Business isn't fully compliant with the franchise agreement or mandatory standards, Aira Fitness will allow a reasonable opportunity (up to 30 days) to correct the issues. If a re-inspection determines the business is still non-compliant, the franchisee will be in default and must pay a non-compliance fee of $500 for each subsequent monthly inspection where non-compliance continues. Additionally, the franchisee must pay $150 per hour for each second or subsequent re-inspection.
The FDD emphasizes that these payments do not constitute a cure for the default. Aira Fitness retains the right to pursue other actions, including terminating the agreement, regardless of whether these fees and royalties are paid. The franchisee (or their general manager) must be present during all inspections and re-inspections.