When does the royalty payment obligation begin for an Aira Fitness franchise?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
OTHER FEES**
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty | $997 per month | Paid on the first day of each calendar month | Covers Gross Sales of preceding calendar month. Payment is made through our payment processing system. |
| Payment begins 30 days after you | |||
| open for |
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the royalty payment obligation begins 30 days after the franchise opens for business. The royalty fee is $997 per month, due on the first day of each calendar month, and covers gross sales of the preceding calendar month. Payment is made through Aira Fitness's payment processing system.
This means that a new Aira Fitness franchisee will not owe any royalty payments for the first month of operation. This can be a helpful ramp-up period for a new business, allowing the franchisee to focus on building revenue without the immediate pressure of royalty obligations.
It's important to note that while the royalty payment is deferred for the first 30 days, other fees, such as the Website Fee, begin when the franchise opens for business. Additionally, the National Marketing Fee and Marketing Services Fee also begin 30 days after opening. Franchisees should carefully review all fees and their respective due dates to manage their cash flow effectively.
Prospective franchisees should confirm with Aira Fitness whether this 30-day grace period is consistently applied and if there are any circumstances that might alter the start date of royalty payments. Understanding the precise timing of all fee obligations is crucial for accurate financial planning.