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How do the restrictions on suppliers for Aira Fitness in Item 8 affect the franchisee's ability to customize their business?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

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

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, Item 8 outlines specific restrictions on where franchisees can source products and services, which significantly impacts their ability to customize their business. Aira Fitness requires franchisees to purchase certain items from designated suppliers, including member management software, key cards, flooring and turf, decals/stickers, exterior signage, fitness equipment, Pods, and billing and collection services. Notably, Pure Gym Equipment LLC, an affiliate, is the sole designated supplier for decals/stickers, the Initial Fitness Equipment Package, the 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 meet Aira Fitness's standards and specifications. While Aira Fitness provides a list of approved suppliers, they may, from time to time, designate a single source supplier for certain products. This means that franchisees have limited flexibility in choosing suppliers for a substantial portion of their required purchases, estimated to be 75 to 85% of initial purchases and 5 to 10% of ongoing costs.

If a franchisee wishes to use an unapproved supplier for products or services with established approved suppliers (excluding items with a single-source supplier), they can request consent from Aira Fitness. However, they must submit samples and information for testing to ensure the product or supplier meets Aira Fitness's standards. This approval process adds a layer of complexity and potential delays, further limiting the franchisee's autonomy in customizing their business. The restrictions ensure uniformity and quality control across all Aira Fitness locations but reduce the franchisee's ability to make independent purchasing decisions based on local market conditions or personal preferences.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.