Under what conditions might Aira Fitness designate a 'designated advertising area'?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
y depict the Marks (any use of the Marks, or a new variation you propose to the Marks, without our prior written approval is prohibited).
C. Local Marketing Fund and Advertising Co-ops.
We may, at our option, designate any geographic area in which at least two AIRA FITNESS franchises are located as a "designated advertising area" for the purposes of establishing a local marketing fund that we control ("Local Marketing Fund") or local or regional advertising cooperative controlled by majority vote of its members ("Cooperative"), and may require you to make a contribution to a local marketing fund and/or a Cooperative, as provided in this paragraph. Any amount contributed to a Local Marketing Fund or Cooperative will be in addition to, and not in lieu of, the National Marketing Fee described above. We have the right to determine the amount of contribution, in our sole judgment, provided that aggregate monthly contributions will not exceed Two Hundred Dollars ($200) per month (subject to adjustment based on the CPI as provided in Section 9.E). If, however, a Cooperative chooses to contribute a greater amount and the amount is approved by a two-thirds majority of the members of the Cooper
Source: Item 23 — **RECEIPTS (FDD pages 59–254)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, Aira Fitness may designate a 'designated advertising area' when at least two Aira Fitness franchises are located in a geographic area. This allows Aira Fitness to establish a local marketing fund or advertising cooperative.
If Aira Fitness chooses to establish a local marketing fund, they will control it. Alternatively, they may allow the franchisees to form a local or regional advertising cooperative, which is controlled by a majority vote of its members. Franchisees may be required to contribute to either the local marketing fund or the cooperative.
Any contributions to a Local Marketing Fund or Cooperative will be in addition to the National Marketing Fee. Aira Fitness has the right to determine the contribution amount, but the aggregate monthly contributions cannot exceed $200 per month, subject to CPI adjustments. However, a Cooperative can choose to contribute a greater amount if approved by a two-thirds majority of its members. Any contributions made to a Local Marketing Fund or Cooperative will count towards the minimum local advertising expenditures outlined in Section 8.B of the Franchise Agreement.