How do the restrictions on suppliers for Aira Fitness in Item 8 affect the franchisee's ability to build relationships with local vendors?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
AND SERVICES**
You must purchase member management software, key cards for 24/7 access, flooring and turf, decals/stickers,exteriorsignage,fitness equipment, Pods, andbillingand collection services fromsuppliers we designate. Currently, our affiliate Pure Gym Equipment LLC is the only designated supplier for the decals/stickers, Initial Fitness Equipment Package, Pod Package, and all signage.
You must purchase fixtures,furniture, equipment, computer hardware, insurance, the video surveillance system, marketing materials, other products and supplies from approved suppliers and/or that meet our standards and specifications.
Except for the decals/stickers, fitness equipment, Pods, and exterior signage, neither we nor our affiliates currently are designated or approved suppliers for any products or services. Except for Pure Gym Equipment LLC, none of our officers hold an interest in any of our suppliers.
We will provide youwith a listof approved manufacturers, suppliers anddistributors("ApprovedSuppliers List") and approved equipment, signs, stationery,supplies and other items or services necessary to operate the Aira Fitness Business ("Approved Supplies List"). From time to time we, an affiliate or a third party vendor or supplier, may be the only approved supplier for certain products. The Supplies List also may include other specific products without reference to a particular manufacturer, or they may designate the specifications and/or standards for other approved products. We may revise the Approved Suppliers List and Approved Supplies List from time to time. We give you the approved lists as we deem advisable.
Except for instances where we designate a single source supplier, if you wish to purchase any products or services for which we have established approved suppliers from an unapproved supplier, you may request our consent in writing. If we request, you mustsubmitsamples and other information as we require for testing or to otherwise determine whether the product, material or supply, or the proposed supplier meets
our specifications and quality and safety standards. We generally will notify you of supplier approval or disapproval within 30 days of our receipt of all the information and samples we request. We currently do not charge for approval of alternative suppliers but reserve the right to do so in future. The supplier also may be required to sign a supplier agreement. We may re-inspect the facilities and products of any supplier of an approved supplier or item and revoke our approval of any supplier or item that fails to continue to meet any of our criteria.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on approved suppliers, which impacts a franchisee's ability to build relationships with local vendors. Aira Fitness requires franchisees to purchase specific items such as member management software, key cards, flooring and turf, decals/stickers, exterior signage, fitness equipment, Pods, and billing and collection services from designated suppliers. Currently, Pure Gym Equipment LLC, an affiliate, is the sole designated supplier for decals/stickers, the Initial Fitness Equipment Package, Pod Package, and all signage.
For other items like fixtures, furniture, computer hardware, insurance, video surveillance systems, and marketing materials, franchisees must use approved suppliers or those meeting Aira Fitness's standards. While Aira Fitness will provide a list of Approved Suppliers, they may, from time to time, designate a single source supplier for certain products. This means franchisees have limited flexibility in choosing suppliers for a significant portion of their required purchases. The FDD estimates that required purchases will represent approximately 75 to 85% of the franchisee's total purchases when establishing the franchised business (excluding the franchise fee and other non-goods expenditures), and 5 to 10% of the ongoing costs to operate the business (excluding franchise fees and royalties and other non-goods expenditures).
This structure limits the franchisee's ability to build relationships with local vendors for required items, as they must adhere to Aira Fitness's approved supplier list. However, franchisees can request consent to use an unapproved supplier if they meet Aira Fitness's standards. This request process involves submitting samples and other information for testing to determine if the product or supplier meets Aira Fitness's requirements. While Aira Fitness negotiates purchase arrangements, such as for the Initial Fitness Equipment Package, this does not guarantee lower prices than those available elsewhere. Franchisees should consider these restrictions and approval processes when assessing their ability to support local businesses and manage costs.