For Aira Fitness, what taxes and governmental charges is the franchisee responsible for paying or reimbursing?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
your Aira Fitness Business to communication with us and provide us information regarding the Aira Fitness Business.
11. YOUR OTHER OBLIGATIONS; NON-COMPETE COVENANTS
- A. Payment of Debts. You agree to pay promptly when due: (i) all payments, obligations, assessments and taxes due and payable to us and our affiliates, suppliers, lessors, federal, state or local governments, or creditors in connection with your business; (ii) amounts related to all liens and encumbrances of every kind and character created or placed upon or against any of the property used in connection with the Aira Fitness Business or business; and (iii) all accounts and other indebtedness of every kind incurred by you in the conduct of the Aira Fitness Business or business. In the event you default in making any such payment, we are authorized, but not required, to pay the same on your behalf and you agree promptly to reimburse us on demand for any such payment.
- B. Insurance. You must maintain in full force and effect throughout the term of this Agreement that insurance which you determine is necessary or appropriate for liabilities caused by or occurring in connection with the development or operation of the Aira Fitness Business. Such insurance must include, at a minimum: (i) special/causes of loss coverage forms, including mechanical/equipment breakdown (previously called "All Risk coverage") on the Aira Fitness Business and all fixtures, equipment and other property used in the operation of the Aira Fitness Business, for full replacement value of the equipment and improvements;
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees are responsible for paying all taxes and governmental charges related to their business. Specifically, franchisees must pay all payments, obligations, assessments, and taxes due and payable to federal, state, or local governments in connection with their Aira Fitness business. This includes promptly paying when due all payments, obligations, assessments, and taxes to the specified entities.
Additionally, Aira Fitness franchisees are responsible for securing and maintaining all required licenses, permits, and certificates necessary for operating their Aira Fitness Business. This ensures that the franchisee's business operates in compliance with all applicable laws and regulations.
Furthermore, the FDD states that if a franchisee fails to report their monthly Gross Sales on a timely basis, Aira Fitness may estimate the Gross Sales and withdraw any unpaid Royalties, National Marketing fees, or other amounts due by use of their Approved Payment Processor. Also, the franchisee is responsible for sales taxes, use taxes, and other similar taxes added to the sales price and collected from the customer and paid to the appropriate authority. If an audit reveals an understatement of Gross Sales, the franchisee is responsible for paying the Royalties, the National Marketing Fees, and other fees plus interest and late fees due on the amount of the understatement.