Who pays for the insurance coverage for Aira Fitness equipment?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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; (iv) automobile liability insurance, including owned, hired and non-owned vehicle coverage with a minimum combined single limit of at least $1,000,000 per claim; (v) workers' compensation and employer's liability insurance covering all of your employees where required by state statute; (vi) professional liability insurance, including abuse and molestation, with a minimum limit of at least $1,000,000 per occurrence; (vii) Commercial Umbrella Liability of at least $10,000,000 per occurrence and $10,000,000 aggregate with "Per Location" aggregate limits when multiple Aira Fitness Business locations are insured under one comprehensive umbrella liability policy (viii) cyber liability with minimum limits of at least $25,000 per occurrence; (ix) medical expense coverage of at least $1,000 per accident; (x) crime (employee dishonesty, theft and robbery) with minimum limits of at least $10,000 per occurrence; (xi) employment practices liability with minimum limits of at least $100,000 per occurrence and inclusive of both first and third party coverage; (xii) AIRA Fitness Franchising LLC and any entity with an insurable interest that we designate (the "Additional Insureds") must be an additional insured on all liability policies required by this subparagraph to the extent each has an insurable interest; (xiii) each policy of insurance maintained pursuant to this Agreement mus
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisee is responsible for securing and paying for the insurance coverage necessary for the Aira Fitness business, including coverage for the equipment. The franchisee must maintain insurance throughout the term of the agreement to cover liabilities related to the development or operation of the Aira Fitness business.
The required insurance must include special/causes of loss coverage forms, including mechanical/equipment breakdown coverage for the full replacement value of the equipment. Additionally, the franchisee must obtain business interruption insurance, comprehensive general liability insurance with minimum limits of $1,000,000 per occurrence and $2,000,000 aggregate, automobile liability insurance, workers' compensation and employer's liability insurance, professional liability insurance, commercial umbrella liability of at least $10,000,000 per occurrence and $10,000,000 aggregate, cyber liability with minimum limits of at least $25,000 per occurrence, medical expense coverage of at least $1,000 per accident, crime insurance with minimum limits of at least $10,000 per occurrence and employment practices liability with minimum limits of at least $100,000 per occurrence.
Aira Fitness Franchising LLC and any entities they designate with an insurable interest must be included as additional insureds on all liability policies. The insurance policies must include a waiver of subrogation in favor of the additional insureds. Aira Fitness can modify the required minimum insurance limits as needed and may require the franchisee to purchase insurance from an approved supplier or participate in an insurance plan established by Aira Fitness. If the franchisee fails to maintain the required insurance, Aira Fitness has the right to procure insurance and charge the costs to the franchisee.
This requirement ensures that the Aira Fitness business is adequately protected against potential losses and liabilities. It is important for prospective franchisees to factor in the costs of these insurance policies when evaluating the financial feasibility of the franchise. Franchisees should consult with insurance professionals to determine the appropriate coverage levels and to obtain competitive quotes to manage these expenses effectively.