What reports, other than Gross Sales, must an Aira Fitness franchisee furnish at Aira Fitness's request?

According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees must furnish several reports to Aira Fitness upon request, in addition to the monthly gross sales report. These reports include a monthly profit and loss statement and balance sheet, a calendar year-end balance sheet, and an annual profit and loss statement for the calendar year reflecting all year-end adjustments. Franchisees must also provide all state and local sales tax returns and all federal, state, and local income tax returns. Furthermore, Aira Fitness requires reports on membership and any other reports that Aira Fitness may require from time to time. All reports submitted must be verified and signed by the franchisee.

This requirement ensures that Aira Fitness has access to comprehensive financial and operational data from each franchise location. This allows Aira Fitness to monitor the financial health of its franchisees, ensure compliance with tax regulations, and track membership trends across the system. The broad scope of "such other reports as we may require from time to time" gives Aira Fitness considerable latitude to request additional information as needed.

For a prospective Aira Fitness franchisee, this means being prepared to maintain detailed and accurate financial records and to regularly submit a variety of reports to Aira Fitness. Failure to provide these reports or to accurately report gross sales can lead to penalties, including estimated gross sales, withdrawal of unpaid royalties and fees, and audits at the franchisee's expense. Franchisees should ensure they understand the specific reporting requirements outlined in the Operations Manual and any other communications from Aira Fitness to avoid potential issues.

It is common practice in franchising for franchisors to require regular financial and operational reports from franchisees. This allows the franchisor to maintain oversight of the system, ensure brand consistency, and provide support to franchisees. However, the specific types of reports required and the frequency of submission can vary depending on the franchise system. Prospective franchisees should carefully review the reporting requirements outlined in the Franchise Agreement and Operations Manual to understand their obligations.