table_specific

What security is required by Aira Fitness' affiliate for the equipment lease for a Pod?

Aira_Fitness Franchise · 2025 FDD

Answer from 2025 FDD Document

irectly through us.

Item Financed Source of Financing Down Payment Amount Financed Term Interest Rate Monthly Payment Prepay Penalty Security Required Liability Upon Default
Equipment Lease – Fitness Center (Note 1) Our Affiliate $8,472 - $44,359 $15,014 to $85,806 3 years; month to month thereafter (Note 2) None if paid on timely basis; 18% on past due amounts $352 - $1,963 (Note 3) None Personal Guaranty Total amount due upon default; loss of franchise; attorney's fees and costs of collection
Equipment Lease – Pod (Note 1) Our Affiliate $5,078 - $13,930 $8,712 - $25,870 3 years; month to month thereafter (Note 2) None if paid on timely basis; 18% on past due amounts $207 - $597 None Personal Guaranty Total amount due upon default; loss of franchise; attorney's fees and costs of collection
Pod Package Lease (Note 4) Our Affiliate $12,000 $40,000 3 years;

Source: Item 10 — **FINANCING (FDD pages 36–38)

What This Means (2025 FDD)

According to Aira Fitness's 2025 Franchise Disclosure Document, if a franchisee chooses to lease equipment for a Pod from Aira Fitness's affiliate, the required security is a Personal Guaranty. This is detailed in the financing section of the FDD.

The franchisee must sign a standard form Pod Package Lease along with the Personal Guaranty, which is attached as Exhibit I to the Disclosure Document. Aira Fitness does not require parties without ownership interest in the franchise to sign the Personal Guaranty.

In the event of default, the franchisee is liable for the total amount due, potential loss of the franchise, and attorney's fees and costs of collection. The table outlines that for an Equipment Lease for a Pod, the down payment ranges from $5,078 to $13,930, and the amount financed ranges from $8,712 to $25,870, with monthly payments between $207 and $597. The interest rate is 18% on past due amounts. Similarly, for a Pod Package Lease, the down payment is $12,000, the amount financed is $40,000, and the monthly payment is $600. These leases also require a Personal Guaranty as security.

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.