Under what conditions does an Aira Fitness franchisee have to pay for the cost of an audit?
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. |
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, franchisees may be responsible for covering the costs associated with an audit under specific circumstances. Aira Fitness will bill the franchisee for the cost of the audit plus interest immediately upon receipt of the bill.
Specifically, the franchisee is responsible for these costs if the audit becomes necessary due to their failure to furnish required reports to Aira Fitness. Additionally, if an audit reveals an understatement of memberships or revenue by 2% or more, the franchisee will be required to pay the audit costs.
This provision encourages franchisees to maintain accurate and transparent financial reporting. Franchisees should ensure timely and accurate submission of all required reports to avoid triggering an audit. Furthermore, franchisees should implement robust accounting practices to minimize the risk of revenue or membership understatements that could lead to bearing the cost of an audit.