What are the primary sources of revenue for Aira Fitness, as recognized in their financial statements?

According to Aira Fitness's 2025 Franchise Disclosure Document, the company's franchisee receivables primarily come from several sources. These include initial franchise fees, which are the upfront payments franchisees make to join the Aira Fitness system. Additionally, Aira Fitness receives revenue from royalty fees, which are ongoing payments typically calculated as a percentage of the franchisee's gross sales.

Brand development contributions also form a part of Aira Fitness's revenue stream. These contributions are likely used for marketing and advertising efforts to promote the Aira Fitness brand as a whole. Lastly, training fees charged to franchisees contribute to the company's revenue. These fees cover the costs associated with training new franchisees and their staff to ensure they meet Aira Fitness's standards and operational procedures.

It is important to note that the timing of revenue recognition may differ from when Aira Fitness invoices its franchisees. The company records accounts receivable when revenue is recognized before invoicing, and unearned revenue when revenue is recognized after invoicing. This is a standard accounting practice to accurately reflect when revenue is earned, regardless of when the invoice is paid. This approach ensures that Aira Fitness's financial statements provide a clear and accurate picture of its financial performance.