What security is required for equipment leases for Aira Fitness pods financed through your affiliate?
Aira_Fitness Franchise · 2025 FDDAnswer 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; month to month thereafter (Note 5) | None if paid on timely basis; 18% on past due amounts | $600 | None | Personal Guaranty | Total amount due upon default; loss of franchise; attorney's fees and c |
Source: Item 10 — **FINANCING (FDD pages 36–38)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, if you finance an equipment lease for either a fitness center or a pod through Aira Fitness's affiliate, the security required is a Personal Guaranty. This is detailed in Item 10, which outlines the financing options available to franchisees. The personal guaranty means that the franchisee is personally responsible for the lease obligations.
Specifically, the table in Item 10 outlines the terms for equipment leases for both fitness centers and pods. 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. The monthly payments range from $207 to $597. For the Pod Package Lease, the down payment is $12,000 and the amount financed is $40,000 with a monthly payment of $600. In both scenarios, the term is 3 years, continuing month to month thereafter. The interest rate is none if paid on a timely basis, but 18% on past due amounts.
In the event of default, the franchisee is liable for the total amount due, loss of the franchise, and attorney's fees and costs of collection. This underscores the importance of carefully considering the financial obligations and risks associated with leasing equipment from Aira Fitness's affiliate. Prospective franchisees should fully understand the terms of the Personal Guaranty and their potential liability before entering into a lease agreement.