What payments are the franchisee responsible for after the Aira Fitness franchise agreement terminates?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
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, franchisees are responsible for certain payments even after the franchise agreement terminates. Attachment D to the Franchise Agreement, titled "MERCHANT ACCOUNT AUTHORIZATION," states that Aira Fitness is authorized to initiate monthly Merchant Account debits for payments due. These payments can include Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts the franchisee owes to Aira Fitness or its affiliates, as outlined in the Franchise Agreement. The specific dollar amount debited each month can vary.
The Merchant Account Authorization also specifies the timing of these debits, which are typically initiated on the first day of every calendar week, unless that day falls on a holiday, in which case the debit will occur on the following business day. Aira Fitness retains the right to change these debit dates and intervals with notice to the franchisee. If the Merchant Account lacks sufficient funds to cover the amounts due, Aira Fitness is entitled to collect interest and late fees as provided in the Franchise Agreement and debit these from the account once sufficient funds are available.
Furthermore, the franchisee is explicitly responsible for covering all costs or fees charged by the Approved Payment Processor related to handling these debits. This means that in addition to the direct payments owed to Aira Fitness, the franchisee must also bear any associated bank or processing fees. This ongoing financial responsibility is a critical consideration for prospective franchisees, as it extends beyond the active term of the franchise agreement and can impact their post-termination financial obligations.