How do the restrictions on suppliers for Aira Fitness in Item 8 affect the franchisee's ability to obtain financing as described in Item 10?
Aira_Fitness Franchise · 2025 FDDAnswer 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)
Based on the 2025 FDD, Item 8 outlines restrictions on where Aira Fitness franchisees can source products and services, but it does not explicitly detail how these restrictions might affect a franchisee's ability to obtain financing. However, Item 23 includes an information release consent that allows Aira Fitness to discuss the franchisee's business with lenders.
The restrictions on suppliers could indirectly impact financing in a few ways. Lenders may view the required purchases from designated suppliers as a risk factor, especially if those suppliers are affiliated with Aira Fitness, like Pure Gym Equipment LLC, which is the sole designated supplier for decals/stickers, the Initial Fitness Equipment Package, the Pod Package, and all signage. Lenders might be concerned about potential conflicts of interest or inflated pricing. Conversely, lenders might see the franchisor-negotiated purchase arrangements as a benefit, assuming they lead to more favorable pricing and better operational efficiency for the franchisee.
To fully understand the implications, a prospective Aira Fitness franchisee should ask the franchisor for specific information on how these supplier restrictions are viewed by lenders who commonly finance Aira Fitness franchises. It would also be prudent to independently assess the pricing and quality of required products from designated suppliers compared to market alternatives, to ensure that these arrangements do not negatively impact the profitability and financial stability of the franchise, and consequently, its ability to secure financing.