How do the restrictions on suppliers for Aira Fitness in Item 8 affect the franchisee's ability to manage their business as described in Item 9?
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. We will provide notice of any revocation by a detailed phone call or email.
We apply the following general criteria in approving a proposed supplier: (i) cost of product; (ii) quality of product (iii) ability to make product in conformity with our specifications.
Insurance
You must purchase insurance from an approved supplier and following the minimum requirements below.
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Item 8 outlines restrictions on where franchisees can source products and services, which directly impacts their operational management as detailed in other Items. Franchisees are required to purchase specific items such as member management software, key cards, flooring, decals/stickers, exterior signage, fitness equipment, Pods, and billing and collection services from designated suppliers. 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, and marketing materials, franchisees must use approved suppliers or meet Aira Fitness's standards.
This mandatory purchasing structure significantly limits a franchisee's autonomy in sourcing decisions. While Aira Fitness estimates that required purchases account for 75% to 85% of initial setup costs and 5% to 10% of ongoing operational costs (excluding fees and royalties), the restrictions mean franchisees cannot negotiate better deals or choose suppliers based on personal preferences or existing relationships. The FDD states that Aira Fitness may receive rebates from suppliers based on franchisee purchases, but this does not guarantee lower prices for the franchisee.
Item 16 further restricts what franchisees may sell, requiring them to offer all products, equipment, and services that Aira Fitness periodically mandates and prohibiting the sale of any unapproved products. This, combined with the supplier restrictions, means franchisees have limited control over their product offerings and sourcing. While franchisees must spend at least $400 per month on local advertising, their marketing options are also constrained by the requirement to use only marketing materials that meet Aira Fitness's standards. These restrictions collectively shape the franchisee's operational management, emphasizing adherence to Aira Fitness's established systems and limiting independent decision-making in procurement and sales strategies.