Under what conditions can the monthly contribution to the local advertising cooperative be increased for Aira Fitness franchisees?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Each local advertising cooperativemay elect to increase the monthly contribution if approved by a two-thirds majority of the cooperative members and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI. Aira Fitness Businesses owned by us and our affiliates are also members of their respective local Cooperative and each company-owned Aira FitnessBusiness has the same voting rights as the franchised locations within the Cooperative. If our company-owned locations comprise the majority of a givenCooperative the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6 (subject to adjustment for increases in the CPI). Payments you make to the cooperative are credited toward your local advertising expense requirement.
Source: Item 6 — **OTHER FEES (FDD pages 18–24)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the monthly contribution to the local advertising cooperative can be increased if approved by a two-thirds majority of the cooperative members. The minimum contribution is also subject to adjustment, but this adjustment cannot exceed the increase in the Consumer Price Index (CPI). This means that while the cooperative can vote to increase contributions, there is a limit tied to a standard measure of inflation, protecting franchisees from potentially excessive increases.
Aira Fitness also retains membership and voting rights in the local advertising cooperatives for any Aira Fitness Businesses owned by the company or its affiliates. Each company-owned Aira Fitness Business has the same voting rights as the franchised locations within the Cooperative. This ensures that Aira Fitness has a voice in the cooperative's decisions, and that company-owned locations are subject to the same fee structure as franchised locations.
However, if Aira Fitness's company-owned locations comprise the majority of a given cooperative, the maximum and minimum fees for that cooperative will be consistent with the range stated in Item 6 of the FDD, subject to adjustments for increases in the CPI. This provision appears to give Aira Fitness more control over the fees in cooperatives where it has a dominant presence, potentially impacting franchisees in those areas. It is important to note that payments made to the cooperative are credited toward the franchisee's local advertising expense requirement, which is a minimum of $4,800 per year. This means that the cooperative contributions help franchisees meet their overall advertising obligations.