Who is responsible for refunds or liabilities due to cancellation of memberships by Aira Fitness?

According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisee is responsible for all refunds or liabilities to members due to the cancellation of memberships. This means that if a member cancels their Aira Fitness membership and is entitled to a refund, the financial responsibility for that refund falls on the franchisee, not Aira Fitness itself.

This allocation of responsibility has significant implications for prospective franchisees. It means franchisees must carefully manage their membership agreements and cancellation policies to minimize potential liabilities. They should ensure they understand the legal requirements regarding membership cancellations in their specific state or locality, as Aira Fitness requires franchisees to abide by these laws and regulations. Accurate financial forecasting and budgeting are essential to account for potential refunds and liabilities, ensuring the Aira Fitness business remains financially stable.

Furthermore, franchisees must use Aira Fitness's approved technology system for all membership agreements and billings. This system likely plays a role in tracking memberships and processing cancellations, so franchisees must be proficient in its use. While Aira Fitness has the right to prohibit or cancel memberships that extend beyond the franchise term, the franchisee remains responsible for any refunds or liabilities associated with those cancellations up to the point of termination.

In the event that the Franchise Agreement is terminated, Aira Fitness has the option to take over the membership contracts, but they will not assume liability for monies owed or other liabilities relating to the membership contracts that accrued prior to the effective date of the assignment. This further emphasizes the franchisee's responsibility for managing membership liabilities during the term of the agreement.