How is the transfer fee determined for an Aira Fitness franchise if the transferee is new to the system?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| we have under the franchise agreement. | |||
| Audits | Cost of audit plus interest | Immediately upon receipt of bill | You pay for cost of audit only if the audit is necessary due to your failure to furnish reports or if audit shows an understatement of Memberships or revenue by 2% or more. |
| Renewal Fee | $2,000 | Upon renewal of the Franchise Agreement | Payable if you renew your franchise after the first 10 year term. |
| Transfer Fee | $5,000 if transferee is an existing Aira Fitness franchisee. If the transferee is new to the system, the transfer fee is equal to the thencurrent Initial Franchise Fee or $40,000, whichever is lower. | Upon application for consent to transfer | Payable when you transfer your franchise. See Item 17 for additional information on |
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the transfer fee for a new franchisee is based on the initial franchise fee. Specifically, if someone new to the Aira Fitness system is acquiring an existing franchise, the transfer fee will be equal to the then-current Initial Franchise Fee or $40,000, whichever is lower. This fee is due upon application for consent to transfer.
This means a prospective Aira Fitness franchisee looking to buy an existing location from a current franchisee will need to pay this transfer fee. The fee compensates Aira Fitness for the work involved in approving the transfer and onboarding a new franchisee. It is important to note that the transfer is not finalized until Aira Fitness approves the application.
For a prospective franchisee, it's crucial to determine the 'then-current Initial Franchise Fee' at the time of the transfer, as this will dictate the actual transfer fee amount. If the initial franchise fee has increased since the original franchisee signed their agreement, the transferee will pay the lower of the current initial franchise fee or $40,000. Conversely, if the initial franchise fee is above $40,000, the transfer fee is capped at $40,000. This provides some cost certainty for the incoming franchisee.
It is also important to note that this transfer fee is separate from any purchase price negotiated between the seller (the existing franchisee) and the buyer (the new franchisee). The transfer fee is paid directly to Aira Fitness, while the purchase price is paid to the franchisee selling the business.