What payments are Aira Fitness franchisees obligated to make promptly when due?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
your Aira Fitness Business to communication with us and provide us information regarding the Aira Fitness Business.
11. YOUR OTHER OBLIGATIONS; NON-COMPETE COVENANTS
- A. Payment of Debts. You agree to pay promptly when due: (i) all payments, obligations, assessments and taxes due and payable to us and our affiliates, suppliers, lessors, federal, state or local governments, or creditors in connection with your business; (ii) amounts related to all liens and encumbrances of every kind and character created or placed upon or against any of the property used in connection with the Aira Fitness Business or business; and (iii) all accounts and other indebtedness of every kind incurred by you in the conduct of the Aira Fitness Business or business. In the event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements; (ii) business interruption insurance covering a minimum 12 months loss of income, written on an actual loss sustained basis, including coverage for our monthly fees with us named as a loss payee with respect to those fees; (iii) comprehensive general liability insurance with minimum limits of at least $1,000,000 per occurrence and $2,000,000 aggregate (including product liability and personal and advertising injury) and "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive general liability policy;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are obligated to make several payments promptly when due. These include payments to Aira Fitness and its affiliates, suppliers, lessors, federal, state, or local governments, or creditors in connection with their business. This encompasses amounts related to liens and encumbrances on property used for the Aira Fitness business, as well as all debts incurred in conducting the business.
Franchisees must also pay a monthly technology fee of up to $500, which covers technology development, maintenance, usage for the franchise system, and subscription and license fees. This technology fee is payable monthly along with the Royalty and National Marketing Fee. Additionally, franchisees are required to pay fifty percent (50%) of the yearly maintenance fees collected from their members upon receipt of those fees, with a minimum payment of $19.50 per member, subject to CPI adjustments.
Furthermore, Aira Fitness is authorized to debit the franchisee's Merchant Account monthly for Royalty Fees, National Marketing Fund contributions, website fees, yearly maintenance fees, interest, late fees, and any other amounts owed to Aira Fitness or its affiliates. The specific dollar amount may vary, and changes to the debit schedule can be made with notice to the franchisee. Franchisees are responsible for any costs or fees charged by the Approved Payment Processor related to these debits and must maintain a sufficient balance in their Merchant Account to cover these amounts.