What sections of the Aira Fitness Multi-Unit Development Agreement are amended regarding fees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 2.1 and 2.2 of the Multi-Unit Development Agreement on "Fees" are amended by the addition of the following:
Notwithstanding the language in Sections 2.2., payment of the development fee is deferred until the franchisor has fulfilled its pre-opening obligations to the franchisee and the franchisee is open for business.
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- Sections 9.4 and 12.8 of the Multi-Unit Development Agreement shall be deleted in their entirety.
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- In lieu of an impound of franchise fees, the Franchisor will not require or accept the payment of any initial franchise fees until the franchisee has (a) received all pre-opening and initial training obligations that it is entitled to under the franchise agreement or offering circular, and (b) is open for business. Because franchisor has material pre-opening obligations with respect to each franchised business Franchisee opens under the Multi- Unit Development Agreement, payment of the franchise fee will be released proportionally with respect to each franchise outlet opened and until franchisor has met all its pre-opening obligations under the Agreement and Franchisee is open for business with respect to each such location.
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to the 2025 Aira Fitness FDD, Sections 2.1 and 2.2 of the Multi-Unit Development Agreement, which address "Fees", are amended. The amendment stipulates that payment of the development fee is deferred until Aira Fitness has fulfilled its pre-opening obligations to the franchisee and the franchisee is open for business.
Additionally, Section 9.A of the Franchise Agreement on "Initial Franchise Fee" is amended for franchisees in Illinois. The Illinois Attorney General requires Aira Fitness to defer all initial franchise fees until Aira Fitness has completed all initial obligations to the franchisee under the Franchise Agreement, and the franchisee has commenced business. This deferral is due to Aira Fitness's financial condition.
In general, Aira Fitness will not require or accept payment of any initial franchise fees until the franchisee has received all pre-opening and initial training obligations and is open for business. The franchise fee will be released proportionally with respect to each franchise outlet opened, and only after Aira Fitness has met all its pre-opening obligations and the franchisee is open for business for each location.